Which of the following is false if a company's financial leverage ratio is increasing over time? a.
Question:
Which of the following is false if a company's financial leverage ratio is increasing over time?
a. The amount of average stockholders' equity is decreasing relative to average total assets.
b. The amount of average total liabilities is increasing relative to average total assets.
c. The company is decreasing its risk related to required interest payments associated with debt.
d. The company is increasing its risk related to required interest payments associated with debt.
LO1
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: