Sincere Ltd. has a Proprietary Ratio of 25%. To maintain this ratio at 30%, management may ~
A. increase Equity.
B. Reduce Debt.
C. Either Increase Equity or Reduce Debt.
D. lncrease Current Assets.
Answer:C
Sincere Ltd. has a Proprietary Ratio of 25%. To maintain this ratio at 30%, management may ~
A. increase Equity. B. Reduce Debt. C. Either Increase Equity or Reduce Debt. D. lncrease Current Assets.