Which of the following choices would be a reason for the increase?

The debt/equity ratio of Cretac Co at 31 May 2009 is higher than the debt/equity ratio at 31 May 2008.

Which of the following choices would be a reason for the increase?
A . A loan due for repayment in 2010 has been replaced by a loan due over the three years to 2012.
B . The terms of a fixed rate loan have been renegotiated and the interest rate will increase from June 2009.
C . In February 2009 the company reduced the number of shares in issue by buying back a number of shares.
D . In March 2009 the shareholders agreed to an increase in the amount the company can borrow to finance expansion.

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Answer: C