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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.
- Issuing new equity
- Account receivable collected
- Sell goods on book value, on cash basis
- Pay off the companys long term bank loan
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