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The corporate’s CEO desires to maximize the credit card debt degrees about the Superior County’s harmony sheet and utilizing the financial debt proceeds to pay back the credit card debt. It is actually assumed that the most level of debt could well be retained fifty% of the total fairness right after deducting The present liabilities from the full property. The credit card debt degree equalled to $4.862 million (See Appendix six) after the proposed credit card debt maximization assumption.
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