Last year, Arbor Corporation reported the following: Balance Sheet Total Assets $ 1,040,000 Total Liabilities 660,000 Total Shareholders' Equity $ 380,000 This year, Arbor is considering whether to issue more debt to fund a $100,000 project or to issue additional shares of common stock. Both options will bring in exactly $100,000. Arbor's current debt contracts contain a debt covenant that requires it to maintain a debt-to-equity ratio of 2.00 or less. Required: 1. Calculate Arbor's current debt-to-equity ratio. (Round your answer to 2 decimal places.)
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