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

question 147

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 .8.35,000,000 = 17,500,000 + 17,500,000If debt is issued: Total Assets = Total Liabilities + Stockholders' EquityDebt-to-equity ratio = 22.5/17.5 or 1.3.

Explain the social and functional roles of olfaction in humans and animals.

Identify the neural pathways and processes for pain perception and its emotional and sensory components.

Comprehend the biological basis for the detection and processing of odors and tastes.

Understand the concepts of consumer surplus and producer surplus and their calculation.

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Definitions:

Carbon Footprint

A measure of total greenhouse gas emissions caused directly or indirectly by an organization, a product, an event, or a person.

Research and Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Global Environment

The broader context, including economic, political, social, and environmental factors, that affects businesses and organizations worldwide.

Boeing

An American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and telecommunications equipment worldwide.