Which of the Following Would Decrease the fiNancial Leverage of a fiRm

Multiple Choice

Which of the following would decrease the financial leverage of a firm?

A) Total assets increase and the debt-to-equity ratio remains constant.
B) Total debt increases and total assets remain constant.
C) Net new equity is sold and existing bonds are paid off.
D) Net new bonds are sold and outstanding common stock is repurchased.
E) Net new bonds are sold and short-term notes payable are paid off.