TRS Company Has a Ratio of (Total Debt/total Assets)that Is

question 71

Multiple Choice

TRS Company has a ratio of (total debt/total assets) that is above the industry average,and a ratio of (long term debt/equity) that is below the industry average.These ratios suggest that the firm ________.

• A) utilizes assets effectively
• B) has too much equity in the capital structure
• C) has relatively high current liabilities
• D) has a relatively low dividend payout ratio
• E) none of these

---

Definitions:

Unlimited Queue

A theoretical concept where the queue or line of customers or items waiting for service can grow indefinitely without any bounds.

Negative Exponential

A statistical distribution often used to model the time between independent events that happen at a constant average rate.

Poisson

A probability distribution that represents the likelihood of a certain number of events happening within a specified time or space interval.

Probability Distributions

Statistical functions that describe all the possible values and likelihoods that a random variable can take within a given range.