A firm had the following values for the four debt ratios discussed in the chapter:

• Liabilities to Assets Ratio: less than 1.0
• Liabilities to Shareholders' Equity Ratio: greater than 1.0
• Long-Term Debt to Long-Term Capital Ratio: less than 1.0
• Long-Term Debt to Shareholders' Equity Ratio: equal to 1.0

1.) Suppose the issued short-term debt for cash. Liabilities to Assets A. increased

B. stayed the same

C. decrease

2.)Suppose the firm issued short-term debt for cash. Long-Term Debt to Long-Term Capital

A. increased

B. stayed the same

C. decreased

3) Suppose the firm issued long-term debt and used the cash proceeds to redeem short-term debt. Treat as a unified transaction. Liabilities to Shareholders' Equity

A. increased

B. stayed the same

C. decreased

4)Suppose the firm issued long-term debt and used the cash proceeds to redeem short-term debt. Treat as a unified transaction. Long-Term Debt to Shareholders' Equity

A. increased

B. stayed the same

C. decreased

5)Suppose the firm redeemed (paid off) long-term debt with cash. Liabilities to Assets

A. increased

B. stayed the same

C. decreased

6)Suppose the firm redeemed (paid off) long-term debt with cash. Long-Term Debt to Long-Term Capital

A. increased

B. stayed the same

C. decreased

7)Suppose the firm issued short-term debt and used the cash proceeds to repurchase shares of its common stock (treat as a unified transaction). Liabilities to Shareholders' Equity

A. increased

B. stayed the same

C. decreased

8)Suppose the firm issued short-term debt and used the cash proceeds to repurchase shares of its common stock (treat as a unified transaction). Long-Term Debt to Shareholders' Equity

A. increased

B. stayed the same

C. decreased

9)Suppose the firm issued $50 million of long-term debt and $50 million of common stock and used the proceeds to buy the building and equipment needed to produce a promising new product. Liabilities to Assets

A. increased

B. stayed the same

C. decreased

10)Suppose the firm issued $50 million of long-term debt and $50 million of common stock and used the proceeds to buy the building and equipment needed to produce a promising new product. Long-Term Debt to Shareholders' Equity

A. increased

B. stayed the same

C. decreased