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Which of the following would result in an increase in the debt-to-equity ratio?

Which of the following would result in an increase in the debt-to-equity ratio? 


[A]A firm issues common stock and uses the proceeds to repurchase an equal amount of preferred stock
[B]A firm issues preferred stock and uses the proceeds to repurchase an equal amount of bonds
[C]A firm with positive additions to retained earnings uses the cash it generates to retire the existing debt
[D]A firm issues bonds and uses the proceeds to purchase short-term assets

Dec 31 2017 View more View Less

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