Use the Table for the Question(s)below

question 3

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 operating 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:

Direct Foreign Investment

An individual or company from one nation investing in business interests or assets in a different country, which includes starting up operations or buying business holdings.

International Finance Corporation

A member of the World Bank Group focused on private-sector development in less developed countries.

Infrastructure Loans

Financial borrowing intended for the construction, improvement, or maintenance of essential public works like roads, bridges, and utilities.

Tariffs

Taxes imposed on imported goods, typically to protect domestic industries, raise revenue, or regulate trade.