15-4. (Adjusting a firm's capital structure) Curley's Fried Chicken Kitchen operates two southern-cooking restaurants in St. Louis, Missouri, and has the following financial structure: $ 100,000...

Extracted text: 15-4. (Adjusting a firm's capital structure) Curley's Fried Chicken Kitchen operates two southern-cooking restaurants in St. Louis, Missouri, and has the following financial structure: $ 100,000 400,000 $ 500,000 $2,000,000 1,500,000 $4,000,000 Accounts payable Short-term debt Current liabilities Long-term debt Owners' equity Total The firm is considering an expansion that would involve raising an additional $2 million. a. What are the firm's debt ratio and interest-bearing debt ratio for its present capital structure? b. If the firm wants to have a debt ratio of 50 percent, how much equity does the firm need to raise in order to finance the expansion?