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Which of the following statements is most correct? If a company lowers its DSO, but no changes occur in sales or operating costs, then a.

Which of the following statements is most correct? If a company lowers its DSO, but no changes occur in sales or operating costs, then

a.

the company might well end up with a higher debt ratio.

b.

the company might well end up with a lower debt ratio.

c.

the company would probably end up with a higher ROE.

d.

the company's total asset turnover ratio would probably decline.

e.

none of the above is a correct statement.

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