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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