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The company’s CEO desires To maximise the personal debt ranges within the Large County’s equilibrium sheet and using the financial debt proceeds to pay off the financial debt. It is assumed that the maximum amount of credit card debt could be retained fifty% of the full fairness after deducting the current liabilities from the overall property. The credit card debt degree equalled to $4.862 million (See Appendix six) once the proposed credit card debt maximization assumption.
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