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Which of the following statements is true of the debt to equity ratio? The higher the debt to equity ratio, the greater the company's financial

  • Which of the following statements is true of the debt to equity ratio?
  • The higher the debt to equity ratio, the greater the company's financial risk.
  • If the debt to equity ratio is less than 1, then the company is financing more assets with debt than with equity.
  • The higher the debt to equity ratio, the lower the company's financial risk.
  • If the debt to equity ratio is greater than 1, then the company is financing more assets with equity than with debt.

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