Ima Broake is trying to expand her small business, Ima Fun Caterer. She has taken out a $10,000 loan for kitchen equipment and her company is currently worth $15,000. As her accountant, she has asked you about whether she can take on a new loan that the bank says she must have at least 25% equity in her business to obtain. The best response that you can give Ima is:
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Ima Broake is trying to expand her small business, Ima Fun Caterer. She has taken out a $10,000 loan for kitchen equipment and her company is currently worth $15,000. As her accountant, she has asked you about whether she can take on a new loan that the bank says she must have at least 25% equity in her business to obtain. The best response that you can give Ima is:
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