A. The debt ratio will decrease from 3/27 before to 3/32 after the additional investment.
B. Additional investment by owner will have no effect on the debt ratio.
C. The debt ratio will decrease from 0.1 (3 ÷ 30) to 0.0857 (3 ÷ 35) after the additional investment.
D. The debt ratio will increase from 30 before to 35 after the additional investment.
ANSWER:
C