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
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 a firm with a TIE ratio of 19x compares favorably to an industry average of 9.7x. | |
E. | More debt typically implies less risk and a 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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