Issuing bonds rather than stock will result in an increase in the debt-to-equity ratio.

Name: Issuing bonds rather than stock will result in an increase in the debt-to-equity ratio.
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Question

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When a company issues bonds, it is taking on more debt. The debt-to-equity ratio is a measure of a company's financial leverage, and it compares the amount of debt to the amount of equity. Issuing bonds will increase the amount of debt, which in turn will increase the debt-to-equity ratio.

Issuing Bonds Rather Than Stock Will Result in an Increase