All Other Things the Same, If Long-Term Debt Is Exchanged

question 141

True/False

All other things the same, if long-term debt is exchanged for short-term debt, the debt-to-equity ratio will be unchanged.

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Definitions:

Shares

Units of ownership in a company or financial asset that represent a portion of the total capital.

Dividend Yield

A company's yearly dividend disbursement compared to its stock price, shown as a financial ratio.

Dividend Income

Income received from owning shares of stock in a company, usually paid out from the company's profits to shareholders at regular intervals.

Shares

Portions of ownership in a corporation, representing a claim on part of its assets and earnings.