Ruth Identifies the Firm's Leverage Ratio to Be Very High

question 84

Multiple Choice

Ruth identifies the firm'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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