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Question 13 5 Points You are looking at the balance sheet of a high tech company. One of the ratios that catch your attention is
Question 13 5 Points You are looking at the balance sheet of a high tech company. One of the ratios that catch your attention is the Debt Equity Ratio. The current Debt Equity Ratio for this firm is 250%. Which of the following is the most accurate as it pertains to the capital structure of the firm? A This debt ratio implies that debt is 2.5 times greater than the assets of the firm. B This debt ratio implies that debt is 2.5 times greater than the equity of the firm. This debt ratio implies that the capital structure is relatively weak. D This debt ratio implies that equity is 2.5 times greater than the debt of the firm
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