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Produce the desired debt ratio

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Reference no: EM133002877

The Newman Company has a debt ratio of 33.33 percent, and it needs to raise $100,000 to expand. Management feels that an optimal debt ratio would be 16.67 percent. Sales are currently $750,000, and the total assets turnover is 7.5/ How should the expansion be finance so as to produce the desired debt ratio?

Reference no: EM133002877

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