Casey Communications Recently Issued New Common Stock and Used the Proceeds

question 105

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.What would occur as a result of this action?

• A)The company's current ratio would increase.
• B)The company's times-interest-earned ratio would decrease.
• C)The company's basic earning power ratio would increase.
• D)The company's equity multiplier would increase.

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