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Which of the following is not a true statement? Select one: a. The debt to equity ratio measures a company's risk and is calculated as
Which of the following is not a true statement?
Select one:
a. The debt to equity ratio measures a company's risk and is calculated as total liabilities divided by stockholders' equity.
b. Leverage enables a company to earn a higher return using debt than without debt if the company can earn a rate of return higher than the cost of borrowing.
c. The acid test ratio is a more conservative measure than the current ratio.
d. The higher the current ratio, the greater the company's leverage.
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