Multiple Choice
A total debt ratio of .35:
A) indicates that the firm is financed with 35% 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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