The Debt/equity Ratio Will Increase If a Company

question 37

Multiple Choice

The debt/equity ratio will increase if a company

• A)pays off its long-term debt.
• B)decides to pay cash for more of its capital purchases.
• C)purchases long-term investments for cash.
• D)declares more current cash dividends.

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Definitions:

Voluntary Process

An action or operation that is performed intentionally or under conscious control.

Passenger

An individual who travels in a vehicle, like a car, plane, or train, but does not operate it.

Driving

The act of controlling and operating a vehicle.

ADHD

Attention Deficit Hyperactivity Disorder, a mental health disorder characterized by patterns of inattention, hyperactivity, and impulsivity.