Multiple Choice
At the end of last year,Ace Company had total assets in the amount of $6,000,000 and total liabilities in the amount of $4,000,000.The company issued shares to new stockholders at the beginning of the current year for $1,000,000.As a direct result of this transaction,the:
A) debt-to-assets ratio will increase.
B) asset turnover ratio will decrease.
C) net profit margin ratio will increase.
D) net profit margin ratio will decrease.
Correct Answer:

Verified
Correct Answer:
Verified
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