Meyer Inc's Assets Are $625,000, and Its Total Debt Outstanding

Multiple Choice

Meyer Inc's assets are $625,000, and its total debt outstanding is $185,000. The new CFO wants to establish a debt/assets ratio of 55%. The size of the firm does not change. How much debt must the company add or subtract to achieve the target debt ratio?

A) $158,750
B) $166,688
C) $175,022
D) $183,773
E) $192,962