Multiple Choice
A total debt ratio of 0.35:
A) Indicates that the firm is financed with 35 percent long-term debt
B) Would exist if a firm had liabilities of $700 and assets of $2,000
C) Indicates that 35 cents of every dollar of capital is in the form of short-term debt
D) Indicates that 35 cents of every dollar of capital is in the form of long-term debt
Correct Answer:
Verified
Correct Answer:
Verified
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