What Effect Will Transaction (B)have on the Net Profit Margin

question 7

Multiple Choice

What effect will transaction (b) have on the net profit margin ratio and the debt-to-assets ratio?

• A)Net profit margin ratio will be unaffected and the debt-to-assets ratio will increase.
• B)Net profit margin ratio will increase and the debt-to-asset ratios will not be affected.
• C)Net profit margin ratio will be unaffected and the debt-to assets ratio will decrease.
• D)Net profit margin ratio will decrease and the debt-to-assets ratio will increase.

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Definitions:

Dieckman Cyclization

A chemical reaction used to form a ring by connecting the ends of a dicarbonyl compound using a base.

Acetoacetic Ester Synthesis

Acetoacetic ester synthesis is a method for creating carbon-carbon bonds, enabling the synthesis of ketones from acetoacetic ester through alkylation followed by decarboxylation.

Malonic Ester Synthesis

A carbon-carbon bond-forming reaction that uses malonic esters to synthesize carboxylic acids with various substituents.

Dieckmann Cyclization

A chemical reaction where a diester reacts with itself in the presence of a strong base to form a β-keto ester, effectively forming a ring structure as part of the process.