Hondo CoHas Total Debt of $252,000 and Stockholders' Equity of $420,000

Multiple Choice

Hondo Co.has total debt of $252,000 and stockholders' equity of $420,000.Hondo is seeking capital to fund an expansion.Hondo is planning to issue an additional $180,000 in common stock,and is negotiating with a bank to borrow additional funds.The bank requires a maximum debt ratio of .75.What is the maximum additional amount Hondo will be able to borrow after the common stock is issued?

A) $639,000
B) $852,000
C) $1,236,000
D) $1,548,000