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If the Pro Forma Balance Sheet Shows That Total Assets

Question 95

Multiple Choice

If the pro forma balance sheet shows that total assets must increase by $400,000 while retaining a debt-equity ratio of 0.75 then:


A) debt must increase by $300,000.
B) equity must increase by the full $400,000.
C) debt must increase by $171,429.
D) equity must increase by $100,000.

Correct Answer:

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