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Analyse the effect of the actions below on the debt/equity ratio. Assume current debt/equity ratio is 0.5. Issuing new equity Account receivable collected Sell goods

Analyse the effect of the actions below on the debt/equity ratio. Assume current debt/equity ratio is 0.5.

  1. Issuing new equity

  1. Account receivable collected

  1. Sell goods on book value, on cash basis

  1. Pay off the companys long term bank loan

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