A Company Had Total Assets of $400,000 and a Debt-To-Assets

question 139

Multiple Choice

A company had total assets of $400,000 and a debt-to-assets ratio was 0.35.Which of the following statements is not true?

• A)Total liabilities are $140,000.
• B)The debt-to-assets ratio of 0.35 indicates that the company relies less on equity financing than on debt financing.
• C)If other companies in the same industry are used as benchmarks and report a lower debt-to-assets ratio,this indicates that this company has a more risky financing strategy.
• D)If the ratio this year is lower than it was last year for this company,it indicates that the company is relying less on debt financing this year.

Identify appropriate scales of measurement for quantitative data.

Differentiate between census, sample, and population in the context of data collection.

Understand the categories of analytics and their specific applications within data analysis.

Identify and understand the significance of the largest experimental statistical studies in history.

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Definitions:

SML Shifts

Changes in the Security Market Line, a graphical representation of the Capital Asset Pricing Model (CAPM) that shows different levels of systematic, or market, risk versus return for the whole market.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically associated with government bonds.

Traditional Investment

Investment in conventional asset classes like stocks, bonds, and real estate, historically relied upon for generating returns.

Possible Outcomes

Various scenarios or results that may occur as a consequence of a decision or action in a given situation.