1. MMM Incorporated 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. $155,750
B. $166,688
C. $175,022
D. $183,773
E. $192,962
2. How much must you have saved if the account earns 16% annually if you plan to withdraw $5000 per year for the next 20 years when there is nothing left?
$97,303.80
None of the above
$29,644.20
$576,918.19
$576,898.73