28-29. (Average/Difficult) If the pro forna balance sheet shows that total asset increase by PHP400,000 while retaining a debt-equity ratio of .75 then: A. debt must increase by PHP300,000. B. equity must increase by the full PHPH400,000. C. debt must increase by PHP171,428. D. equity must increase by PHP100,000.

28-29. (Average/Difficult) If the pro forna balance sheet shows that total asset increase by PHP400,000 while retaining a debt-equity ratio of .75 then: A. debt must increase by PHP300,000. B. equity must increase by the full PHPH400,000. C. debt must increase by PHP171,428. D. equity must increase by PHP100,000.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter11: The Cost Of Capital

Section: Chapter Questions

Problem 12PROB

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