Multiple Choice
Rio Tinto's debt to equity ratio is .54 while David Jone's is .68. By comparing these ratios we can conclude
A) that David Jones is in danger of bankruptcy.
B) very little because the firm's are in different industries.
C) that Rio Tinto uses too little debt financing.
D) that David Jones uses too little equity financing.
Correct Answer:
Verified
Correct Answer:
Verified
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