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Assuming all else is constant,which of the following statements is CORRECT?
Capital Equipment
Long-term assets such as machinery, vehicles, or large tools that a business uses in its operations to produce goods or services.
Leverage Ratio
A financial ratio indicating the level of debt used by a company to finance its assets, relative to its equity.
Tax Burden
The total amount of income, property, and sales tax that an individual or corporation must pay to various government agencies.
Interest Burden
The ratio indicating the proportion of a company's pre-tax earnings that are consumed by interest payments.
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