The current balance sheet of Handyman Inc.reports total assets of $20 million,total liabilities of $2 million,and owners' equity of $18 million.Handyman Inc.is considering several financing possibilities in order to expand operations. If Handyman Inc.'s owner invests an additional $2 million to finance the expansion,the debt to equity ratio will
A) stay the same
B) decrease
C) increase
D) cannot be determined from this information.
Correct Answer:
Verified
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