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Gustav Foods issued new common stock. The proceeds were used to redeem some of its outstanding debt. These transactions had no effect on total assets,

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Gustav Foods issued new common stock. The proceeds were used to redeem some of its outstanding debt. These transactions had no effect on total assets, the interest rate Gustav pays, EBIT, or the tax rate. Which of the following statements is correct? Taxable income will decline. The tax bill will increase The ROA will decline

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