A Firm Whose Debt to Equity Ratio ________ the Industry

question 45

Multiple Choice

A firm whose debt to equity ratio ________ the industry average will ________ future financing flexibility by financing with equity at the next opportunity but doing so may sacrifice earnings per share.

• A)is less than; maximize
• B)exceeds; minimize
• C)exceeds,maximize
• D)None of the above.

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Definitions:

Accounts Receivable

Signifies the amount of money that customers owe to a business for products or services that have been provided but remain unpaid.

Editing Fees

Charges or costs associated with the professional editing of written material, including books, articles, and reports.

Shift of Assets

Shift of assets involves reallocating or transferring assets from one investment to another or from one asset class to another.

Accounts Receivable

Money owed to a business by its customers for goods or services sold on credit.