Evidently, as an organization takes on debt its leverage ratio [increases / decreases]. With zero debt the

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Evidently, as an organization takes on debt its leverage ratio

[increases / decreases]. With zero debt the leverage ratio can never be lower than . This means that even a small amount of debt will make the leverage ratio greater than .

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Essentials Of Accounting

ISBN: 9780273771463

11th International Edition

Authors: Leslie K. Breitner

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