Project financing is the arrangement of financing for very large individual long-term capital projects

Which of the following company actions will have no effect on its Leverage Ratio?

a) It issues (sells) new equity shares and uses the money to purchase equipment b) It issues (sells) new equity shares and uses the money to pay off exactly that amount in bank loans c) It issues (sells) a bond and uses the money to pay off exactly that amount in bank loans d) It issues (sells) a bond and uses the money to return to owners

SOX stands for the Sorbet-Oxford Act

Indicate whether the statement is true or false