Indicate Whether Each of the Actions Listed Below Will Immediately

question 35

Essay

Indicate whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is greater than 1.0 before the action is taken.
- $\begin{array}{lccc} & \text { Current ratio } & \text { Acid-test ratio } & \text { Total debt-to-equity ratio } \\\text { Refinancing currently-maturing debt }\\\text { for five more years }\end{array}$

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Definitions:

Early Adopters

Individuals or groups who use or embrace a new product, innovation, or technology soon after it is launched, before the majority of the population does.

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

Early Majority

A segment of a population that adopts new ideas or technologies just before the average person.

External Motivation

Motivation that is driven by external rewards or pressures rather than personal desire or interest.