Question
If a company sells additional common stock and uses the proceeds to increase its inventory level and to increase its cash balances, what is the
If a company sells additional common stock and uses the proceeds to increase its inventory level and to increase its cash balances, what is the near-term (immediate) impact (increase, decrease, no change) of this transaction on the following ratios?
The current ratio will: increase? Decrease? or no change?
The return on stockholders' equity will: increase? Decrease? or no change?
The quick ratio will: increase? Decrease? or no change?
The debt to total assets ratio will: increase? Decrease? or no change?
The total asset turnover ratio will: increase? Decrease? or no change?
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