Consider each statement separately, considering whether True (mark T) or False (mark F). An acceptable answer...

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Consider each statement separately, considering whether True (mark T) or False (mark F). An acceptable answer may be TFFF. If long-term debt is exchanged for short-term debt, the debt-to-equity ratio will remain unchanged. Issuing common stock will decrease a company's financial leverage. If a company's return on assets is substantially lower than its' cost of borrowing, the common stockholders would normally want the company to have a relatively high debt-to-equity ratio. A lower price-earnings ratio means investors are willing to pay a premium for the stock because of optimistic future growth prospects. Consider each statement separately, considering whether True (mark T) or False (mark F). An acceptable answer may be TFFF. If long-term debt is exchanged for short-term debt, the debt-to-equity ratio will remain unchanged. Issuing common stock will decrease a company's financial leverage. If a company's return on assets is substantially lower than its' cost of borrowing, the common stockholders would normally want the company to have a relatively high debt-to-equity ratio. A lower price-earnings ratio means investors are willing to pay a premium for the stock because of optimistic future growth prospects.