Question
If Gopher, Inc. issues zero-coupon bonds to finance new plant and equipment, then what will be the impact on the company's debt-to-equity ratio over the
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If Gopher, Inc. issues zero-coupon bonds to finance new plant and equipment, then what will be the impact on the company's debt-to-equity ratio over the life of the bond?
a. increase as the maturity date approaches.
b. decline as the maturity date approaches.
c. remain relatively constant throughout the life of the bond.
If Gopher, Inc. issues zero-coupon bonds to finance new plant and equipment, then what will be the impact on the company's debt-to-equity ratio over the life of the bond?
| a. | increase as the maturity date approaches. | |
| b. | decline as the maturity date approaches. | |
| c. | remain relatively constant throughout the life of the bond. |
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
978-1119496496
