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The CEO designed an alternative choice of buying the HC Business and maximizing the credit card debt on the Pacific Grove’s balance sheet. The debt and equity levels of Pacific Grove and HC Company are mixed, away from which the utmost financial debt stage is calculated by incorporating the fifty% of the whole equity on both equally of the organization’s stability sheets. The utmost credit card debt level is calculated as $24. 584 million close to (See Appendix seven).

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