If Firm a Has a Higher Debt-To-Equity Ratio Than Firm

question 51

Multiple Choice

If firm A has a higher debt-to-equity ratio than firm B, then:

• A) firm A has a lower equity multiplier than firm B.
• B) firm B has a lower equity multiplier than firm A.
• C) firm B has higher financial leverage than firm A.
• D) None of the above.

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