Answer:
a. Current ratio
Explanation:
Current Ratio is the least likely to be affected
The Current Ratio is given as
Current Ratio = [ Current assets ] ÷ [ Current liabilities ]
Now,
Building a new plant is a fixed asset for the company.
Thus, It will add to the Fixed assets
Since,
The Formula for current ratio is independent of the fixed assets
Therefore,
It will be least affected.
While,
Debt to equity ratio = [ Debt ] ÷ [ Equity ]
Debt to asset ratio= [ Total Debt ] ÷ [ Total Assets ]
Net fixed assets to total assets = [ Net fixed assets ] ÷ [ Total assets ]
in all the above relations, fixed asset will change the value of the total assets.
Hence,
They all will be affected
