Which of the Following Transactions Will Lower a Company's Financial

question 105

Multiple Choice

Which of the following transactions will lower a company's financial leverage?

• A) A mortgage loan is obtained and the proceeds are used to pay off existing short-term debt.
• B) Preferred stock is sold and the proceeds are used to pay off existing short-term debt.
• C) Common stock is sold and the proceeds are used to pay off existing short-term debt.
• D) Short-term debt is obtained to get the company through a period of negative net income and cash flow.

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Definitions:

Oropharynx

The part of the throat located at the back of the mouth, serving as a pathway for food moving from the mouth to the esophagus and air passing to the larynx.

Respiration Rate

The number of breaths a person takes per minute, a vital sign of primary importance in health assessments.

Nasopharyngitis

An inflammation of the nasal passages and the upper part of the throat, often referred to as the common cold.

Bronchioles

Small branches of the bronchi that lead to the air sacs in the lungs, involved in the process of gas exchange.