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27. The following statement is true regarding solvency ratios: a. Return on equity is a solvency ratio. b. A 1.5 ratio for debt to equity

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27. The following statement is true regarding solvency ratios: a. Return on equity is a solvency ratio. b. A 1.5 ratio for debt to equity indicates a greater portion of company assets are being financed with equity rather than with debt. C. The industry average for the debt to equity ratio is 1. A company ratio of 2.3 indicates that this company has a better ability to pay long-term debt. d. An increasing trend for the debt to equity ratio is always considered favorable

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