Examine what happens to the debt ratio when: a. Short-term debt is converted into an equivalent amount
Question:
a. Short-term debt is converted into an equivalent amount of long-term debt.
b. A major asset is sold, with part of the proceeds being used to repay debt.
c. Cash is used for a share buyback.
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aThere will be no change in the debt ratio as shortterm and longterm debts are both part of total li...View the full answer
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Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730302414
4th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
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Related Video
A stock buyback is when a public company uses cash to buy shares of its own stock on the open market. A company may do this to return money to shareholders that it doesn\\\\\\\'t need to fund operations and other investments.This video will give you detailed overview about how stock buy back works and how it is useful tool for companies to raise capital .
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