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QUESTION 7 Which one of the following statements is correct? O If the debt-to-assets ratio is greater than 0.50, then the debt-to-equity ratio must be

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QUESTION 7 Which one of the following statements is correct? O If the debt-to-assets ratio is greater than 0.50, then the debt-to-equity ratio must be less than 1.0. O Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5. The assets-to-equity ratio can be computed as 1 plus the debt-to-equity ratio. o To realize the best risk and reward profile, financial leverage should be maximized. QUESTION 8 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Window esc 20 898 Fl F2 F3 F7

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