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Question 15 5 pts Quantum Communications is considering issuing new debt and using the proceeds to buy back part of its outstanding shares of stock.

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Question 15 5 pts Quantum Communications is considering issuing new debt and using the proceeds to buy back part of its outstanding shares of stock. The debt issue would have no effect on total assets, the interest rate Quantum pays, operating profit, or the tax rate. Which of the following is likely to occur if the company goes ahead with the debt issue? Net income will increase The return on assets will decline. The tax bill will increase The times interest earned ratio will increase

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