A Company Has a Debt-To-Assets Ratio of 0

question 8

Multiple Choice

A company has a debt-to-assets ratio of 0.45 and a return on equity ratio of 10%.If the company then issues additional shares of common stock for cash,which of the following is a correct statement?

• A)The debt-to-assets ratio will decrease and the return on equity ratio will decrease.
• B)The debt-to-assets ratio will increase and the return on equity ratio will increase.
• C)The debt-to-assets ratio will not change and the return on equity ratio will not change.
• D)The debt-to-assets ratio will decrease and the return on equity ratio will increase.

---

Definitions:

Angry for a While

A state of temporary anger, where an individual experiences feelings of displeasure or hostility for a certain period.

Reduced Brain Size

A condition where the brain volume is smaller than average, which can be associated with various neurological or developmental disorders.

Psychiatric Disorder

A mental disorder characterized by significant disturbances in an individual's cognitive, emotional, or behavioral functioning.

Antisocial Parents

Parents who exhibit behaviors that are hostile, disruptive, or violating societal norms, potentially influencing their children's behavior negatively.