A Company Has a Debt-To-Assets Ratio of 0

question 8

Multiple Choice

A company has a debt-to-assets ratio of 0.45 and a return on equity ratio of 10%.If the company then issues additional shares of common stock for cash,which of the following is a correct statement?

• A)The debt-to-assets ratio will decrease and the return on equity ratio will decrease.
• B)The debt-to-assets ratio will increase and the return on equity ratio will increase.
• C)The debt-to-assets ratio will not change and the return on equity ratio will not change.
• D)The debt-to-assets ratio will decrease and the return on equity ratio will increase.

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Definitions:

Secure Internal Network

A network within an organization designed to provide security against unauthorized access.

Firewall

A software program or hardware device designed to prevent unauthorized access to computers or networks.

Media Access Control (MAC)

A unique identifier assigned to network interfaces for communications on the physical network segment.

Physical Address

A unique identifier assigned to each network interface on a network. It's also known as a MAC (Media Access Control) address in the context of networking.