Chitown has $20 million in assets. It is considering a 40% debt/asset ratio vs. its current 20% debt/asset ratio. Debt carries interest charges of 12% and shares sell for $20 per share. What is the number of shares under each plan?
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Chitown has $20 million in assets. It is considering a 40% debt/asset ratio vs. its current 20% debt/asset ratio. Debt carries interest charges of 12% and shares sell for $20 per share. What is the number of shares under each plan?
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