The current balance sheet of Bramble Inc. reports total assets of $24 million, total liabilities of $6
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The current balance sheet of Bramble Inc. reports total assets of $24 million, total liabilities of $6 million, and stockholders' equity of $18 million. Bramble is considering several financing possibilities in order to expand operations. What will be the effect on Bramble's debt to assets ratio if Bramble issues an additional $6 million in stock to finance its expansion? O The debt to assets ratio will decrease from 0.2500(6/24) to 0.2000 (6/30) after the additional stock sale. O The debt to assets ratio will increase from 24 before to 30 after the additional investment. O The additional stock issuance will have no effect on the debt to assets ratio. O The debt to assets ratio will decrease from 6/18 before to 6/30 after the additional stock sale.
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
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