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Maneesh 30 April 2020 at 15:46 PM

Ras Corporation has long-term debt of $1,300,000 and equity of $1,000,000. The board of directors has set a goal of
1:1 for the company’s debt-equity ratio. Which of the following could the company employ to achieve this goal?

A) Paying a dividend on its common stock.
B) Issuing new bonds.
C) Issuing rights to purchase new common stock and were exercised.
D) Paying a stock dividend to the existing shareholders.

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FACULTY 10 May 2020 at 04:26 PM

Issuing rights to purchase new common stock and were exercised.(option C)

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FACULTY 10 May 2020 at 04:26 PM

Issuing rights to purchase new common stock and were exercised.(option C)

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