A company starts with $1 billion in assets, $400 million in owners’ equity & $600 million in debt. It borrows $100 million from its bank to keep as cash. What does this do to its balance sheet? Increases assets and increases leverage ratio Increases assets and decreases leverage ratio Unchanged assets and increases leverage ratio Unchanged assets and unchanged leverage ratio Decrease assets and decrease leverage ratio

A company starts with $1 billion in assets, $400 million in owners’ equity & $600 million in debt. It borrows $100 million from its bank to keep as cash. What does this do to its balance sheet? Increases assets and increases leverage ratio Increases assets and decreases leverage ratio Unchanged assets and increases leverage ratio Unchanged assets and unchanged leverage ratio Decrease assets and decrease leverage ratio

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 7P

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