If a Firm Acquires More Long-Term Debt While Also Issuing

question 137

Multiple Choice

If a firm acquires more long-term debt while also issuing additional shares of stock, then the:

• A) Debt-equity ratio will increase.
• B) Debt-equity ratio will decrease.
• C) Debt equity ratio will remain constant.
• D) Change in the debt-equity ratio cannot be determined from the information provided.
• E) Net Income will increase.

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Definitions:

Nonverbal Messages

Communication transmitted through actions or behaviors rather than words.

Intensive Listening

Active and focused listening practice aimed at understanding and analyzing the content being heard.

Casual Listening

A relaxed form of listening where the listener is not actively analyzing or critically responding to the audio input.

Grapevine Communication

Informal and unofficial channels of communication within an organization, spreading information through word-of-mouth.