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A company with a higher level of gearing will have: Question 4Answer a. a high liabilities/total assets ratio. b. a lower owners' equity/total assets ratio.

A company with a higher level of gearing will have:

Question 4Answer

a.

a high liabilities/total assets ratio.

b.

a lower owners' equity/total assets ratio.

c.

a higher owners' equity/total assets ratio.

d.

Both a high liabilities/total assets ratio and a lower owners' equity/total assets ratio.

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