Target debt ratio of meyer inc


Meyer Inc's assets are $625,000, and its total debt outstanding is $185,000. The new CFO wants to establish a debt ratio of 55%. The size of the firm does not change. How much debt must the company add or subtract to achieve the target debt ratio?

a. $156,250
b. $158,750
c. $175,022
d. $183,773
e. $192,962

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Finance Basics: Target debt ratio of meyer inc
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