Question

In: Finance

Which of the following transactions would have an immediate positive impact on ROE and ROIC (make...

Which of the following transactions would have an immediate positive impact on ROE and ROIC (make them go up), ignoring depreciation, interest expense, and taxes?

a. The company purchases machinery using trade credit for $20,000.

b. The company collects $30,000 from customers on accounts receivable

c. The company pays off bank-notes payable for $10,000 by rolling short-term debt into long-term debt of 5-year bonds at the same interest rate.

d. The company sells common stock for $30,000.

e. None of the above.

Solutions

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