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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Definitions:

Cryoprecipitate

A blood product derived from plasma that is rich in clotting factors, used to treat conditions like hemophilia.

Fibrinogen

A blood plasma protein that's critical for blood clot formation, playing a pivotal role in the body's ability to stop bleeding.

Dysrhythmias

Abnormal heart rhythms that can range from harmless to life-threatening, characterized by irregular electrical activity in the heart.

Blood Warmer

A device used in medical settings to warm stored or donated blood to body temperature before transfusion to prevent hypothermia.