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The debt ratio is measured by Total liabilities/Total assets. Assume the cash balance remains positive at all times. State the effect the following event
The debt ratio is measured by Total liabilities/Total assets. Assume the cash balance remains positive at all times. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: Repaying the principal of an interest-only loan 2 years before it is due [Select] Increase No change Decrease Question 13 Earnings per share is measured by Net profit / Weighted average number of shares on issue. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: Repaying the principal of an interest-only loan 2 years before it is due [Select] 1 pts
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