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A Debt to Total Assets Ratio of 80

Question 20

Multiple Choice

A debt to total assets ratio of 80%:


A) means that 20% of investment in assets has been provided by lenders.
B) is undesirable for creditors .
C) is desirable for creditors.
D) is likely to be supported by cyclical entities that have fluctuating profits, such as many high-tech companies.

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