Which of the Following Actions Would Necessarily Result in a Higher

question 14

Multiple Choice

Which of the following actions would necessarily result in a higher debt-equity ratio, all else equal?

• A)Convertible bondholders convert their bonds to shares of common stock.
• B)The value of the firm's equity increases because of a lower cost of equity capital.
• C)Warrant owners exercise their warrants.
• D)The firm uses its excess cash to repurchase some of its shares.

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Definitions:

Outside Opinions

Perspectives or advice that come from individuals not directly involved in a situation or problem, often considered to provide objective viewpoints.

Diffusion of Responsibility

A socio-psychological phenomenon whereby a person is less likely to take responsibility for action or inaction when others are present.

Prosocial Behavior

Acts performed with the intention of benefiting others, such as helping, sharing, or donating.

Cyberbullying

A form of bullying or harassment using electronic means, typically through social media platforms, emails, or text messages.