MATCHING
For each of the management decisions below, determine what effect (if any) there would be on the debt to equity ratio. Indicate, in the space provided, whether there would be
a.an increase
b.a decrease
c.no effect
1.Sold common stock to investors who already owned some of the firm's bonds
2.Borrowed $35,000 on a short-term note from a bank
3.Declared and paid cash dividends on preferred stock
4.Purchased inventory for cash
5.Pay off bonds at maturity
6.Bought debentures of another corporation
7.Acquired treasury stock in exchange for cash
8.Called a bond issue
9.Sold convertible bonds at a discount
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