Question CorrectMark 10.00 out of 10.00On December 31, 2015, Panettone Inc. has total liabilities of $555,500 and total equity of$1,049,500. The company needs to raise additional funds through debt and equity. The companywill issue 4,000 shares of common stock at $13.25 per share and in addition it intends to borrowas much as it can from Bank of Switzerville. Bank of Switzerville requires a maximum debt-to-assetratio of 0.64. What is the maximum additional amount that the company can borrow after theadditional stock is issued? 4Select one:a. $53,000b. $1,061,120c. $505,620d. None of these total debt before loan: $555,500 total assets before loan: $1,658,000 (555,500+1,049,500+(4000*13.25)) (555,500+x)/(1,658,000+x)=0.64 X=$1,404,500 Company can borrow a maximum amount of $1,404,500Your answer is correct.The correct answer is: None of these
CorrectMarks for this submission: 10.00/10.00.