Which of the following will not affect the calculation of leverage ratios? Oa. Existence of significant debt covenants Ob. Existence of pension liabilities where projected benefit Sability is much greater than plan assets and accumulated benefit obligation Oc. Existence of assets where fair value is much lower than book value Od. Existence of operating leases QUESTION 27 An analyst should treat preferred stock on a firm's balance sheet as debt when calculating leverage ratios if the preferred stock in a. callable by the issuer Ob issued at a variable dividend rate. Oc redeemable by shareholders. Od. convertible into common stock QUESTION 28 If a firm capitalizes a lease instead of treating the lease as an operating lease, the effect on the current ratio and the debt-to-equity ratio will be Current ratio Debt-to-equity ratio A) Increase Increase B) No effect Increase C) No effect Decrease D) Decrease Increase Oa. Option A Ob. Option C Oc Option B Od. Option D QUESTION 29 If a company's current ratio increases from 1.2 to 1.4 from one year to the next, and its quick ratio decreases from 0.2 to 0.15 over the same time period, this indicates Oathe liquidity must have increased