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The Proportion of a Firm's Funds That Is Provided by Shareholders

Question 56

Multiple Choice

The proportion of a firm's funds that is provided by shareholders is equal to:


A) the debt ratio minus the times interest earned.
B) 1 minus the debt ratio.
C) the times interest earned plus 1.
D) the debt ratio minus the dividends paid.
E) the fixed charge coverage ratio minus 1.

Correct Answer:

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