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The business’s CEO needs To maximise the personal debt ranges over the Large County’s stability sheet and utilizing the debt proceeds to pay off the credit card debt. It truly is assumed that the most amount of financial debt can be kept fifty% of the full fairness just after deducting The existing liabilities from the full assets. The financial debt degree equalled to $4.862 million (See Appendix six) once the proposed financial debt maximization assumption.

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