Beranek Corp has $625,000 of assets (which equal total invested capital), and it uses no debt—it is financed only with common equity. The new CFO wants to employ enough debt to raise the total debt to total capital ratio to 40%, using the proceeds from borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio?

answer: i guess 5 units?

step-by-step explanation:

.there can be infinite values of m and n that can satisfy the above equation. for each value of m of m or n. there maybe infinite sets of solution for the above

step-by-step explanation:

this is a good question! i’ll do some research and what i find, i’ll contact you asap when i have something! ✊

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