StartupCo commenced operations at the beginning of 2020. $125...

StartupCo commenced operations at the beginning of 2020. $125 million of equity was raised to fund the purchase of equipment as well as for general corporate purposes. As part of its business planning process, a 5-year forecast was developed (Base Case) as well as upside and downside scenarios (High and Low Cases, respectively). At the end of 2020, StartupCo issued $150 million of 5-year debt, repayable in equal annual installments at the end of each year, to finance its future capital program.

Using the Low Case, calculate the asset-to-equity ratio in 2024E.

1.0X

1.2X

5.6X

0.2X