Which of the Following Statements Is Most Correct? If a Company

Multiple Choice

Which of the following statements is most correct? If a company lowers its DSO,but no changes occur in sales or operating costs,then

A) the company might well end up with a higher debt ratio.
B) the company might well end up with a lower debt ratio.
C) the company would probably end up with a higher ROE.
D) the company's total asset turnover ratio would probably decline.
E) none of the above is a correct statement.