ctions would definitely be influenced by an infusion of equity capital in the firm. This would lower the firm’s debt ratio and creditors’ risk exposure. K. In hindsight, what should D’Leon have done back in 2007? Answer: Before the company took on its expansion plans, it should have done an extensive ratio analysis to determine the effects of its proposed expansion on the firm’s operations. Had the ratio
analysis been conducted, the company would have “gotten its house in order” before undergoing the expansion