Casey Communications Recently Issued New Common Stock and Used the Proceeds

question 59

Multiple Choice

Casey Communications recently issued new common stock and used the proceeds to pay off some of its short-term notes payable. This action had no effect on the company's total assets or operating income. Which of the following effects would occur as a result of this action?

• A) The company's current ratio increased.
• B) The company's times interest earned ratio decreased.
• C) The company's basic earning power ratio increased.
• D) The company's equity multiplier increased.
• E) The company's debt ratio increased.

Recognize the role of psychology in understanding motivation and emotion.

Understand the concept of subjective well-being.

Identify theories related to motivation and desire.

Recognize the concept of hedonic adaptation in the context of happiness and life satisfaction.

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Definitions:

Matching Hypothesis

The theory that individuals are more likely to form and maintain relationships with others who are similar in physical attractiveness.

Paradox

A statement or proposition that, despite sound reasoning from acceptable premises, leads to a conclusion that seems logically unacceptable or self-contradictory.

Passionate Love

An intense emotional and physical attraction to someone, often characterized by a strong desire and longing for the person.

Tender Sexual Feelings

Gentle and affectionate emotions associated with sexual attraction or love.