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The CEO manufactured an alternative choice of obtaining the HC Business and maximizing the credit card debt over the Pacific Grove’s equilibrium sheet. The credit card debt and fairness levels of Pacific Grove and HC Firm are blended, outside of which the maximum financial debt stage is calculated by including the fifty% of the whole equity on both equally of the corporate’s balance sheets. The most financial debt amount is calculated as $24. 584 million somewhere around (See Appendix seven).