Question
XYZ borrows $350 million from Bank of USA. It invests $250 million in a new generator and uses the rest, $100 million, to invest in
XYZ borrows $350 million from Bank of USA. It invests $250 million in a new generator and uses the rest, $100 million, to invest in high-yield Certificate of Deposit. What is the impact of this transaction on XYZ's balance sheet?
| A. | Liabilities increase by $350 million | |
| B. | Net income increases by $100 million | |
| C. | Assets increase by $250 million | |
| D. | Shareholder equity increases by $100 million |
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The Handbook Of Structured Finance
Authors: Arnaud De Servigny, Norbert Jobst
1st Edition
0071468641, 978-0071468640
