If a corporation uses retention of earnings to finance the purchase of property instead of issuing equity securities, then

Name: If a corporation uses retention of earnings to finance the purchase of property instead of issuing equity securities, then
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Using retained earnings to finance the purchase of property instead of issuing equity securities does not change the debt/equity ratio because both options involve using internal financing sources rather than taking on new debt.

If a Corporation Uses Retention of Earnings to Finance the Purchase