The current balance sheet of Blawnox Inc reports total assets of $20 million, total liabilities of $2 million, and owners' equity of $18 million. Blawnox Inc is considering several financing possibilities in order to expand operations. If Blawnox Inc's owner invests an additional $2 million to finance the expansion, the debt to equity ratio will
a. stay the same
b. decrease
c. increase
d. cannot be determined from this information.
b
You might also like to view...
The underlying principle for using more emotional appeals in business-to-business advertising is that emotions can be a part of every type of decision, even in the business-to-business environment
Indicate whether the statement is true or false
Calculate the NPV and IRR for the proposed Pathrite system. Can Eloise make a compelling case for the investment?
What will be an ideal response?
The definition of sustainability developed by the UN's Brundtland Commission refers to:
A. Business practices that utilize the triple bottom line for valuation. B. Business practices that meet the needs of the current generation without compromising the ability of future generations to meet their needs. C. Business practices that support communities in the developing world. D. Businesses practices that engage in corporate social responsibility regardless of whether they communicate this with their customers or add profit. E. Business practices that institute a CSR plan.
Zapstreet is a stock brokering firm. Its employees use a private network within the organization to communicate with each other regarding stock prices and trading accounts. Zapstreet's network is an example of a(n) ________.
A. cloud B. intranet C. server D. Ethernet E. WLAN