Question

If Company A has a shareholders' deficit, which of the following can it do to improve its debt-to-equity ratio?

O increase its advertising budget to draw in more customers
O borrow money from the bank to buy new equipment
o invest in new facilities to draw in more customers
O sell off part of its inventory and/or equipment

Answer 1

sell off part of its inventory and or equipment

Step-by-step explanation:

Debt/Equity=

Total Shareholders’ Equity /

Total Liabilities

​

​