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

question 40

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 lower financial leverage than firm A.
• D) None of the above.

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Definitions:

Conscious Awareness

Conscious awareness is the state of being aware of one's own existence, thoughts, emotions, and surroundings at any given moment.

Coping Mechanisms

Strategies or methods employed by individuals to manage stress, adversity, or emotional pain.

Mental And Physical Strength

The combination of cognitive resilience and physical toughness that enables an individual to face and overcome challenges.

Formative Period

A critical phase of development or growth where foundational skills, habits, or structures are established.