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QUESTION 10 An equity multiplier of 1.005 and a TIE of 30.02 would probably indicate that the firm has borrowed far too much the firm

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QUESTION 10 An equity multiplier of 1.005 and a TIE of 30.02 would probably indicate that the firm has borrowed far too much the firm has large excess borrowing capacity the firm has used too high an operating fixed cost level compared to its variable operating costs the company is likely to fail (go bankrupt)

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