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Which of the following is not correct with respect to the debt to assets ratio? Multiple Choice A. Cyclical companies (those whose sales fluctuate widely
Which of the following is not correct with respect to the debt to assets ratio?
Multiple Choice
A. Cyclical companies (those whose sales fluctuate widely due to changing economic conditions) generally have a higher debt to assets ratio.
B. Cyclical companies (those whose sales fluctuate widely due to changing economic conditions) generally have a smaller debt to assets ratio.
C. A high debt ratio increases long-term solvency risk.
D. The percentage of long-term debt to assets would be higher for a utility company than for a retailer.
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