Suppose that at year-end 1999 Executive Paper had unused lines

Suppose that at year-end 1999 Executive Paper had unused lines of credit that would have allowed it to borrow a further $300 million. Suppose also that it used this line of credit to raise short-term loans of $300 million and invested the proceeds in marketable securities. Would the company have appeared to be?

(a) More or less liquid?

(b) More or less highly levered? Calculate the appropriate ratios.