Question: Chester's total assets are expected to increase by 10% this year solely funded by bonds. Assume no change in the number of stocks, a positive

Chester's total assets are expected to increase
Chester's total assets are expected to increase by 10% this year solely funded by bonds. Assume no change in the number of stocks, a positive ROS of 5%, and that despite the efforts of distributing all the earnings as dividends, there will be no impact on the stock value. What is the expected value of the leverage ratio? It will not change It will decrease by 5% because the profits increases equity. It will ncrease 5% because the earnings increases the cash account balance. It will increase 10%

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