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Accounting I 1 answer below » Seedly Corporation’s most recent balance sheet reports total assets of $35,000 and total liabilities of $17,500,000. Management is considering issuing $5,000,000 of par value bonds (at par) with maturity date of ten years and a contract rate of 7%. What effect, if any, would issuing the bonds have on the company’s debt-to-equity ratio? a. Issuing the bonds would cause the firm’s debt -to-equity ratio to improve from 1.0 to 1.3. b. Issuing the bonds would cause the firm’s debt-to-equity ratio to worsen from 1.0 to 1.3 c. Issuing the bonds would cause the firm’s debt-to-equity ratio to remain View complete question » Seedly Corporation’s most recent balance sheet reports total assets of $35,000 and total liabilities of $17,500,000. Management is considering issuing $5,000,000 of par value bonds (at par) with maturity date of ten years and a contract rate of 7%. What effect, if any, would issuing the bonds have on the company’s debt-to-equity ratio? a. Issuing the bonds would cause the firm’s debt -to-equity ratio to improve from 1.0 to 1.3. b. Issuing the bonds would cause the firm’s debt-to-equity ratio to worsen from 1.0 to 1.3 c. Issuing the bonds would cause the firm’s debt-to-equity ratio to remain unchanged d. Issuing the bonds would cause the firm’s debt-to-equity ratio to improve from .5 to .8 e. Issuing the bonds would cause the firm’s debt-equity ratio to worsen from .5 to .8 View less » Dec 01 2015 08:16 PM
