A. The debt ratio will decrease from .1 (3/30) to .0857 (3/35) after the additional investment.
B. The debt ratio will decrease from 3/27 before to 3/32 after the additional investment.
C. The debt ratio will increase from 30 before to 35 after the additional investment.
D. Additional investment by owner will have no effect on the debt ratio.
ANSWER:
A. The debt ratio will decrease from .1 (3/30) to .0857 (3/35) after the additional investment.