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Fernandez Industries issued $ 5 0 0 , 0 0 0 of zero - coupon bonds that mature in 8 years. The bond issue price
Fernandez Industries issued $ of zerocoupon bonds that mature in years. The bond issue price is $ Prior to the debt issue, Fernandez had total assets of $ million and total equity of $ million.
First, Calculate Fernandez's debttoequity ratio before and after the bonds are issued.
Then, fill in the blank from dropdown: How did the new borrowing affect the financial leverage of Fernandez? The financial levera ge increased decreased, or remained the same after the bonds were issued.
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