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Hello can someone please help me answer these questions? Thank you in advance!


  1. style="color:#000000;">T or F A decreasing debt/equity ratio indicates a company is funding more assets with debt and presents more risk for creditors. (if false, identify error)





2.In considering equity and debt financing, which of the following statements is false?

a.     Compared to debt financing, equity is a more expensive source of funding

b.  Most firms prefer to have both debt and equity financing

c.   In general, the higher the proportion of total debt to equity ratio, the greater the likelihood the firm may have difficulty in meeting its obligations in some future period

d.  Both interest and dividend payments are required to be made by the issuing corporation

e. Debt to assets ratio represents: for every $1 of assets, the portion of assets funded by debt



3. Tor F The changes in Accounting Standards for leases will require more leases be capitalized and reflected on the balance sheet. The impact of this change is anticipated to increase the debt/equity ratio. (if false, identify error)

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