Red Corp. has a rate of return on assets of 10% and a debt/equity ratio of 2 to 1. Not including any indirect effects on earnings, the immediate impact of retiring debt on these ratios is a(n)
A)Option a
B)Option b
C)Option c
D)Option d

Question

Red Corp. has a rate of return on assets of 10% and a debt/equity ratio of 2 to 1. Not including any indirect effects on earnings, the immediate impact of retiring debt on these ratios is a(n) 
A)Option a 
B)Option b 
C)Option c 
D)Option d

Quizplus · Accepted Answer

The Answer of Red Corp. has a rate of return on assets of 10% and a debt/equity ratio of 2 to 1. Not including any indirect effects on earnings, the immediate impact of retiring debt on these ratios is a(n) 
A)Option a 
B)Option b 
C)Option c 
D)Option d

Red Corp Has a Rate of Return on Assets of 10