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Which of the following best describes the purpose of the debt/equity ratio? A. It measures the company's ability to attract new financing. B. It measures

Which of the following best describes the purpose of the debt/equity ratio?

A.	It measures the company's ability to attract new financing.

B.	It measures the company's ability to generate cash flows.

C.	It measures the extent of a companys use of leverage.

D.	It measures the proportion of the company's investments that are funded by bank loans.

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