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Which of the following statements about the debt ratio is false? Multiple Choice Higher financial leverage means greater risk. It is a measure of the

Which of the following statements about the debt ratio is false?

Multiple Choice

Higher financial leverage means greater risk.

It is a measure of the risk associated with liabilities.

A relatively low ratio signifies lower risk.

The ratio is computed by dividing total equity by total liabilities.

The ratio is computed by dividing total liabilities by total assets.

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