问题如下:
5.Under the assumptions given in Exhibit 4, Retail, Inc.'s, level of debt on the balance sheet is most likely to:
选项: increase over the next three years.
remain constant over the next three years.
C.decrease over the next three years.
解释:
5.B Given a constant debt-to-equity ratio, the level of debt will remain constant if the level of equity remains constant. Given that Retail, Inc., intends to pay out all net income as dividends over the period, and there are no share repurchases or gains and losses in other comprehensive income, Retail, Inc.'s, equity will remain constant.
Profits are expected to be positive and to increase by 5% per year for the next five years. 是干扰项是吧?