Ace Corporation Has a Debt to Total Assets Ratio of 65

question 9

Multiple Choice

Ace Corporation has a debt to total assets ratio of 65%. This tells the user of Ace's financial statements

• A) Ace is getting a 35% return on its assets
• B) There is a risk Ace cannot pay its debts as they come due
• C) 65% of the assets are financed by the stockholders
• D) Ace should issue more debt to reduce its risk

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Definitions:

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Vitelline Membrane

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Species-specific Protein

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