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

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Definitions:

Inflammatory Chemicals

Substances produced by the body in response to injury or infection, causing redness, heat, swelling, and pain as part of the immune response.

Lymphatic Vessels

Part of the lymphatic system, these vessels transport lymph, a fluid containing white blood cells and waste products, back into the bloodstream.

Valves

Structures that open and close to control the flow of fluids in one direction, commonly found in the heart and veins of the circulatory system.

Vaccinations

The administration of antigenic material (a vaccine) to stimulate an individual's immune system to develop adaptive immunity to a pathogen.