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The organization’s CEO wishes To maximise the personal debt degrees over the Superior County’s equilibrium sheet and using the financial debt proceeds to repay the personal debt. It is assumed that the utmost level of credit card debt could well be retained fifty% of the total equity just after deducting the current liabilities from the overall property. The credit card debt degree equalled to $4.862 million (See Appendix 6) once the proposed financial debt maximization assumption.

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