Which of the following is correct about debt related ratios? A.A firm with a debt to equity
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Question:
Which of the following is correct about debt related ratios?
A.A firm with a debt to equity ratio of 55% compares favorably to an industry average of 35%.
B.A firm with a TIE ratio of 19x compares favorably to an industry average of 9.7x.
C.More debt typically implies less risk.
D.A firm with a debt to equity ratio of 30% compares favorably to an industry average of 65% and afirm with a TIE ratio of 19x compares favorably to an industry average of 9.7x.
E.More debt typically implies less risk anda firm with a TIE ratio of 19x compares favorably to an industry average of 9.7x.
F.A firm with a debt to equity ratio of 30% compares favorably to an industry average of 65%.
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