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A company with a debt-to-equity ratio above 1 recently paid down their long-term debt with cash from the issuance of common stock. How will this
A company with a debt-to-equity ratio above 1 recently paid down their long-term debt with cash from the issuance of common stock. How will this transaction impact the company's debt-to-equity ratio and return on equity (ROE)? A. There will be no impact to the debt-to-equity ratio or return on equity. B. The debt-to-equity ratio will increase and the return on equity will decrease. C. The debt-to-equity ratio will decrease and the return on equity will increase. D. Both the debt-to-equity ratio and return on equity will decrease
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