- 4 Abc Company Balance Sheet At December 31 2021 Had 50 000 In Debt And 50 000 In Equity For The Year Ended December 1 (28.09 KiB) Viewed 45 times
4. ABC Company balance sheet at December 31, 2021 had $50,000 in debt and $50,000 in equity. For the year ended December
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4. ABC Company balance sheet at December 31, 2021 had $50,000 in debt and $50,000 in equity. For the year ended December
4. ABC Company balance sheet at December 31, 2021 had $50,000 in debt and $50,000 in equity. For the year ended December 31, 2021 ABC Company had net income of $5,000. A. What was ABC Company's return on equity at December 31, 2021 B. Assume ABC Company borrowed $25,000 on December 31, 2021 and used the proceeds from this borrowing to buy back stock on December 31, 2021. What was ABC's new return on equity C. How does the transaction described in B above affect the risk of ABC Company from the investor's standpoint