Holding assets constant, when debt decreases Net income increases and Stockholders' equity declines Net income and...

Holding assets constant, when debt decreases

		Net income increases and Stockholders' equity declines
		Net income and Stockholders' equity decline
		Net income declines and Stockholders' equity increases
		Cannot be determined from the information provided
		Net income and Stockholders' equity increase

Solutions

Expert Solution

When debt decrease then interest payment decreases which increases in net income.
When debt decreases then equity increases.
Option e is correct option. Net income and Stockholders' equity increase

jeff jeffy answered 2 years ago

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