Casey Communications Recently Issued New Common Stock and Used the Proceeds

question 47

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.Which of the following effects occurred as a result of this action?

• A) The company's current ratio increased.
• B) The company's times interest earned ratio decreased.
• C) The company's basic earning power ratio increased.
• D) The company's equity multiplier increased.
• E) The company's total debt to total capital ratio increased.

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Definitions:

Neurons

In the nervous system, specialized cells communicate information by sending electrical and chemical signals.

Synapse

A synapse is the junction between two neurons, facilitating the transmission of electrical or chemical signals from one neuron to another.

Chemicals

Substances composed of atoms or molecules, used in or produced by chemical processes.

Synapses

The junctions through which neurons communicate with other neurons, muscle cells, or glands, using chemical or electrical signals.