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The organization’s CEO wants to maximize the financial debt degrees about the Large County’s equilibrium sheet and utilizing the debt proceeds to pay back the personal debt. It truly is assumed that the utmost standard of financial debt can be retained fifty% of the full equity just after deducting The existing liabilities from the entire assets. The financial debt level equalled to $4.862 million (See Appendix 6) following the proposed financial debt maximization assumption.
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