What Best Explains Why a Firm's Ratio of (Long Term

question 15

Multiple Choice

What best explains why a firm's ratio of (long term debt/total capital is lower than the industry average,while the ratio of (income before interest and taxes/debt interest charges) is lower than the industry average.

• A) The firm pays lower interest on long-term debt than the average firm
• B) The firm has more short-term debt than average
• C) The firm has a high ratio of (current assets/current liabilities)
• D) The firm has a high ratio of (total cash flow/long term debt)
• E) none of these

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Definitions:

B Lymphocytes

White blood cells that form part of the immune system and are involved in the production of antibodies to combat infections.

Humoral Immunity

The aspect of immunity that is mediated by antibodies produced by B cells in response to external pathogens.

Specific Antibodies

Immune system proteins tailored to recognize and neutralize specific antigens, such as viruses or bacteria.

Circulating Erythrocytes

Red blood cells that are moving through the bloodstream, carrying oxygen to body tissues and removing carbon dioxide.