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Which of the following statements is CORRECT? Other things held constant, the more debt a firm uses, the higher its operating margin will be. Debt
Which of the following statements is CORRECT? Other things held constant, the more debt a firm uses, the higher its operating margin will be. Debt management ratios show the extent to which a firm's managers are attempting to magnify returns on owners' capital through the use of financial leverage. Other things held constant, the more debt a firm uses, the higher its profit margin will be. Other things held constant, the higher a firm's debt ratio, the higher its TIE ratio will be. Debt management ratios show the extent to which a firm's managers are attempting to reduce risk through the use of financial leverage. The higher the debt ratio, the lower the risk
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