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Ruth, a Financial Consultant, Determines Her Client's Leverage Ratio to Be

Question 53

Multiple Choice

Ruth, a financial consultant, determines her client's leverage ratio to be very high. What suggestion could Ruth give to help the firm reduce its leverage ratio?


A) Increase the money supply by selling a part of its assets.
B) Pay back part of its debts to improve the ratio.
C) Maintain more current assets than current liabilities.
D) Reduce the sales to total assets ratio of the firm.

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