Multiple Choice
Taggart Technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt.The stock issue would have no effect on total assets,the interest rate Taggart pays,EBIT,or the tax rate.Which of the following is likely to occur if the company goes ahead with the stock issue?
A) The ROA will decline.
B) Taxable income will decline.
C) The tax bill will increase.
D) Net income will decrease.
E) The times-interest-earned ratio will decrease.
Correct Answer:
Verified
Correct Answer:
Verified
Q9: Debt management ratios show the extent to
Q47: Casey Communications recently issued new common stock
Q48: Exhibit 4.1<br>The balance sheet and income
Q49: If a firm's ROE is equal to
Q50: Amram Company's current ratio is 2.0.Considered alone,which
Q51: Duffert Industries has total assets of $1,050,000
Q53: Zero Corp's total common equity at the
Q54: The operating margin measures operating income per
Q56: Exhibit 4.1<br>The balance sheet and income
Q57: Walter Industries' current ratio is 0.5.Considered alone,which