A company begins the year with some debt. During the year the company makes a profit and retains some of its earnings, adding to its cash. It otherwise takes no action to alter its balance sheet. What is its new leverage ratio compared to the start of the year?
a) higher
b) lower
c) the same
d) none of the above
Answer: b) lower
Business
You might also like to view...
Many proposals are written in response to RFPs
Indicate whether this statement is true or false.
Business
Your tax status and the tax-advantaged benefits and opportunities afforded you by your employer may change as a result of your marriage
Indicate whether this statement is true or false.
Business