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The current balance sheet of Coronado Inc. reports total assets of $75 million, total liabilities of $3 million, and stockholders' equity of $72 million. Coronado
The current balance sheet of Coronado Inc. reports total assets of $75 million, total liabilities of $3 million, and stockholders' equity of $72 million. Coronado is considering several financing possibilities in order to expand operations. What will be the effect on Coronado's debt to assets ratio if Coronado issues an additional $5 million in stock to finance its expansion? O The debt to assets ratio will decrease from 3/72 before to 3/78 after the additional stock sale. O The debt to assets ratio will decrease from 0.0400(3/75) to 0.0375 (3/80) after the additional stock sale. O The debt to assets ratio will increase from 75 before to 80 after the additional investment. O The additional stock issuance will have no effect on the debt to assets ratio
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