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You are analyzing a firm and find that its debt ratio is increasing over time. Are you concerned, and if so, what is the problem

You are analyzing a firm and find that its debt ratio is increasing over time. Are you concerned, and if so, what is the problem indicated by the trend?

A. None of the answers is correct.

B. No, the firms financial flexibility is increasing.

C. Yes, the firms debt is increasing.

D. Yes, the firms financial flexibility is decreasing.

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