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If a Firm's Ratio of (Total Liabilities/total Assets)is Higher Than

Question 5

Multiple Choice

If a firm's ratio of (total liabilities/total assets) is higher than the industry average while the total capitalization of the firm's stockholders' equity) is lower than the industry average,the most likely assumption is that the firm _______.


A) has more current liabilities than the industry average
B) has more leased assets than the industry average
C) will be more profitable than the industry average
D) has more current assets than the industry average
E) none of these

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