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Moving to another question will save this response. uestion 15 Kharnila Corp. is considering the purchase of a new factory an
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Answer #1

Solution :- Debt finance involved = (Total factory cost - Financed by new common stock) / Total factory cost.

= (99214 - 18482) / 99214

= 80732 / 99214

= 0.8137 i.e., 81.37 %

Conclusion :- Proportion of debt financing involved = 81.37 % (approx).

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