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The CEO made an alternative choice of getting the HC Company and maximizing the financial debt on the Pacific Grove’s harmony sheet. The personal debt and fairness levels of Pacific Grove and HC Company are blended, from which the maximum credit card debt level is calculated by introducing the fifty% of the full fairness on both of the company’s stability sheets. The utmost credit card debt amount is calculated as $24. 584 million roughly (See Appendix seven).
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