Seedly Corporation's Most Recent Balance Sheet Reports Total Assets of $35,000,000

question 76

Multiple Choice

Seedly Corporation's most recent balance sheet reports total assets of $35,000,000 and total liabilities of $17,500,000.Management is considering issuing $5,000,000 of par value bonds (at par) with a maturity date of ten years and a contract rate of 7%.What effect,if any,would issuing the bonds have on the company's debt-to-equity ratio?

• A)Issuing the bonds would cause the firm's debt-to-equity ratio to improve from 1.0 to 1.3.
• B)Issuing the bonds would cause the firm's debt-to-equity ratio to worsen from 1.0 to 1.3.
• C)Issuing the bonds would cause the firm's debt-to-equity ratio to remain unchanged.
• D)Issuing the bonds would cause the firm's debt-to-equity ratio to improve from .5 to .8.
• E)Issuing the bonds would cause the firm's debt-to-equity ratio to worsen from .5 to .8.

Understand the concept of integrated and non-integrated air carriers and their service scope.

Recognize the importance of technology for freight visibility and supply chain coordination.

Comprehend the tendering process in transportation management.

Grasp the significance of transportation in supply chain design and cost management.

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Definitions:

Planning Horizon

The time period over which an individual, organization, or government plans for and anticipates future events and activities.

Elasticity

Percentage change in one variable resulting from a 1-percent increase in another.

Federal Government

The national government of a federation, which typically has distinct powers delegated to it by the constitution, separate from those of member states or provinces.

Legislative Branch

The branch of government responsible for creating and passing laws, in the United States, it is composed of the House of Representatives and the Senate.