Use the Table for the Question(s)below

question 68

Multiple Choice

Use the table for the question(s) below.

-Consider the above balance sheet for your firm (in thousands of dollars) .You plan on acquiring some new equipment using a $700,000 finance lease.If you go through with the lease,what will be the change in your firm's debt-equity ratio?

• A)0.44
• B)0.56
• C)0
• D)0.80
• E)1.69

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Definitions:

Maximum Total Number

The highest possible aggregate count or quantity of a particular item or entity within a defined context.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.

Point B

A specific position or location on a graph or diagram, used often in economic models to denote a particular outcome or situation.

Point A

A specific position or location often referenced in economic models or graphs to illustrate a particular scenario or outcome.