Which of the Following Statements Is CORRECT

question 104

Multiple Choice

Which of the following statements is CORRECT?

• A) If one firm has a higher debt ratio than another, we can be certain that the firm with the higher debt ratio will have the lower TIE ratio, as that ratio depends entirely on the amount of debt a firm
• Uses.
• B) A firm's use of debt will have no effect on its profit margin on
• Sales.
• C) If two firms differ only in their use of debt-i.e., they have identical assets, sales, operating costs, interest rates on their debt, and tax rates-but one firm has a higher debt ratio, the firm
• That uses more debt will have a lower profit margin on sales.
• D) The debt ratio as it is generally calculated makes an adjustment for the use of assets leased under operating leases, so the debt ratios of firms that lease different percentages of their assets
• Are still comparable.
• E) If two firms differ only in their use of debt-i.e., they have identical assets, sales, operating costs, and tax rates-but one firm has a higher debt ratio, the firm that uses more debt will
• Have a higher profit margin on sales.

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Definitions:

NK Cells

Natural Killer cells, a type of lymphocyte in the immune system that plays a major role in the host-rejection of both tumors and virally infected cells.

Macrophages

A type of white blood cell that engulfs and digests foreign substances, dead cells, and other debris in the body as part of the immune response.

Emotion-Focused Coping

A strategy for managing stress that involves identifying and working through the emotional responses to stressful situations.

Problem-Focused Coping

A strategy for dealing with stress by identifying and addressing the root cause of a problem directly, rather than managing its symptoms.