Question
In considering equity and debt financing, which of the following statements is generally true? The lower the measure of the non-current debt-to-equity ratio, the greater
In considering equity and debt financing, which of the following statements is generally true?
The lower the measure of the non-current debt-to-equity ratio, the greater the likelihood the company will have difficulty in meeting its obligation in some future period | ||
Interest and dividend payments are required to be made by the issuing company | ||
Most companies prefer to have no debt and rely exclusively on equity financing | ||
The higher the measure of the debt-to-equity ratio, the greater the likelihood the company will have difficulty in meeting its obligation in some future period |
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