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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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