You issue debt use the proceeds to repurchase equity, and replace old debt. As a result of this change stock price rises. What else is true?

A.

EPS rises

B.

DFL falls

C.

TIE rises

D.

Number of shares rises

If a company issues debt, uses the funds to repurchase equity, and replaces old debt, then which ONE of the following statements regarding leverage is true?

	A.	Times Interest Earned increases
	B.	DOL increases
	C.	DCL increases
	D.	DFL decreases