Holding All Other Factors Constant, If a Firm Increases Its

Multiple Choice

Holding all other factors constant, if a firm increases its current liabilities relative to total assets, an immediate effect will be that

A) it increases return and reduces risk.its financing costs will rise.
B) it has no effect on return and increases risknet working capital will rise.
C) it reduces return and reduces risk.its current ratio will rise.
D) it reduces return and increases risk.
E) none of above are correct