Recharge

ur Answer $$

A proforma balance sheet indicates that total assets will increase by $$300,000.$ If a debt$-$equity ratio of $0\mathrm{.}5$ is maintained then debt must increase by:

$$100,000.$

$$300\mathrm{.}000$

Reason: if Dre $-0\mathrm{.}5,$ an increase of $$300k$ in assets will be financed with $$100k$ of debt and $$200k$ of equity.

$$200,000$

Reasonc ar D$/$E $=5.$ an increase in assets of $$300k$ will be financed with $$100k$ of debt and $$200k$ of equity.

$$150,000$

Resson: WOF $-0\mathrm{.}5.$ an increase of $$300\%$ in assets will be financed weth $$100K$ of debt and $$200K$ of equity

Correct Answer

$$100,000$

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