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<p>(<strong>a)Borrowing More,</strong></p> <p><strong>(b)Issue of Debentures,</strong></p> <p><strong>(c)Issue of Equity Shares,</strong></p> <p><strong>(d)Redemption of Debt.</strong></p> <p> </p>
D) redemption on debt
Debts to total asset ratio can be improved by generating more profit by enhancing market share,obviously redemption on debt add a feather on the cap of this ratio
I think Both can improve
(c)Issue of Equity Shares.
(d)Redemption of Debt.
C. Issue of Equity Shares.
However, this does not apply to free shares or share dividends.
When issuing shares on the open market, cash increases as a result (Assuming payment is made in cash).
Dr. Cash
Cr. Share Capital
Thus increasing total assets of the firm, without an equivalent in debt.
