When a Firm's Debt-Equity Ratio Is 1

question 46

Multiple Choice

When a firm's debt-equity ratio is 1.0, the firm:

• A)Has too much long-term debt in relation to leases
• B)Has less long-term debt than equity
• C)Is nearing insolvency
• D)has as much in long-term liabilities as in equity

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Definitions:

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The collection of beliefs, attitudes, and perceptions that an individual holds about themselves, shaping their identity and behavior.

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Individuals who emphasize the value and agency of human beings, individually and collectively, and generally prefer critical thinking and evidence over acceptance of dogma or superstition.

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