Look again at the balance sheet for Geomorph in Problem 10. Suppose that at year-end Geomorph had

Question:

Look again at the for Geomorph in Problem 10. Suppose that at year-end Geomorph had $30 in cash and marketable securities. Immediately after the year-end it used a to borrow $20 for one year, which it invested in additional marketable securities. Would the company appear to be
(a) More or less liquid,
(b) More or less highly leveraged?
Make any additional assumptions that you need.

Balance Sheet
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