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The corporation’s CEO wishes To maximise the debt amounts over the Higher County’s equilibrium sheet and utilizing the debt proceeds to pay off the financial debt. It is actually assumed that the utmost level of financial debt can be kept 50% of the whole fairness right after deducting the current liabilities from the total belongings. The personal debt degree equalled to $four.862 million (See Appendix 6) following the proposed debt maximization assumption.
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