Various capital structures Charter Enterprises currently has $1.5 million in total assets and is totally equity financ

Post by **answerhappygod** » Tue Jan 18, 2022 12:57 pm

Various capital structures Charter Enterprises currently has
$1.5 million in total assets and is totally equity financed. It is
contemplating a change in its capital structure. Compute the amount
of debt and equity that would be outstanding if the firm were to
shift to each of the following debt ratios: 10%, 20%, 30%,
40%, 50%, 60%, and 90%. (Note: The amount of total assets would
not change.) Is there a limit to the debt ratio's
value?