1 during the period of the loan. A summary of Montvale's balance sheet after the loan follows.
![1164_964675a2-3285-49d1-89e5-2cc70a218a67.png](https://secure.tutorsglobe.com/CMSImages/1164_964675a2-3285-49d1-89e5-2cc70a218a67.png)
a. Compute Montvale's debt/equity ratio immediately after the loan.
b. How much additional debt can the company incur without violating the debt covenant?
c. How large a dividend can the company declare and pay at the end of 2011 without violating the debt covenant?
d. If Montvale had declared, but not yet paid, a $20,000 dividend before it took out the loan, could the company pay the dividend afterward without violating the debt covenant? Why or why not?