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A New Company Has a Debt Ratio of 0

Question 7

Multiple Choice

A new company has a debt ratio of 0.35. What does this mean?


A) The company has $0.35 in assets for every $1.00 of liabilities.
B) The company has $0.35 in liabilities for every $1.00 of assets.
C) The company has $0.35 in sales for every $1.00 of liabilities.
D) The company has $0.35 in liabilities for every $1.00 of sales.

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