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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.

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