Why are successful white-collar criminals such as madoff able to carry out their schemes for so long when similar types of fraud
1 answer:
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Answer:
firm must borrow $288000 to achieve the target debt ratio
Explanation:
given data
assets = $720,000
debt to total capital ratio = 40%
to find out
How much must the firm borrow to achieve the target debt ratio
solution
we get here debt here by Debt to Total capital ratio that is express as
Debt to Total capital ratio = Debt ÷ ( Debt + Equity ) ....................1
put here value we get debt
0.40 =
debt = $288000
so firm must borrow $288000 to achieve the target debt ratio