Effect on its leverage ratio compared to the start of year

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Reference no: EM13980824

A company has made a profit for the year. Which of the following company actions will have no effect on its Leverage ratio compared to the start of the year?

a) It retains all its earning and uses the money to purchase new equipment

b) It issues (sells) new equity shares and uses the money to purchase equipment

c) It issues (sells) new equity shares and uses to the money to pay off exactly that amount in bank loans

d) It issues (sells) a bond and uses the money to pay off exactly that amount in bank loans

Reference no: EM13980824

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