Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What does a high debt-to-equity ratio indicate? A. The company has a greater number of current liabilities due in the short-term, like accounts payable, than
What does a high debt-to-equity ratio indicate?
-
A. The company has a greater number of current liabilities due in the short-term, like accounts payable, than its current assets, like accounts receivable.
-
B. The companys assets are financed by a high proportion of equity, meaning the company is financially strong.
-
C. The company has a strong equity position as compared to its debt.
-
D. The company is over-leveraged, or has a lot of debt compared to equity, which may impact a companys ability to access capital for growth.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started