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The debt to tangible equity ratio indicates which of the following: a. The ability of owners equity to cover all long-term debt in the event
The debt to tangible equity ratio indicates which of the following:
a. The ability of owners equity to cover all long-term debt in the event of a business downturn.
b. This higher the ratio, the less equity to cover debt.
c. A high ratio may indicate more risk to lenders, i.e., of management walking away in a crisis due to leverage.
d. All of the above.
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