A company has a debt-to-assets ratio of 0.45 and a return on equity ratio of 10%. If the company then issues additional shares of common stock for cash, which of the following is a correct statement?

A. The debt-to-assets ratio will decrease and the return on equity ratio will increase.

B. The debt-to-assets ratio will decrease and the return on equity ratio will decrease.

C. The debt-to-assets ratio will not change and the return on equity ratio will not change.

D. The debt-to-assets ratio will increase and the return on equity ratio will increase.