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The organization’s CEO desires To maximise the financial debt ranges on the Higher County’s equilibrium sheet and using the debt proceeds to repay the credit card debt. It's assumed that the most level of credit card debt will be held fifty% of the overall equity soon after deducting The present liabilities from the entire property. The personal debt stage equalled to $four.862 million (See Appendix 6) following the proposed debt maximization assumption.
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