Which of the Following Statements Is CORRECT

question 31

Multiple Choice

Which of the following statements is CORRECT?

• A) Other things held constant,the more debt a firm uses,the higher its operating margin will be.
• B) Debt management ratios show the extent to which a firm's managers are attempting to magnify returns on owners' capital through the use of financial leverage.
• C) Other things held constant,the more debt a firm uses,the higher its profit margin will be.
• D) Other things held constant,the higher a firm's total debt to total capital ratio,the higher its TIE ratio will be.
• E) Debt management ratios show the extent to which a firm's managers are attempting to reduce risk through the use of financial leverage.The higher the total debt to total capital ratio,the lower the risk.

---

Definitions:

Snack Items

Small portions of food typically consumed between regular meals, often for immediate satisfaction of hunger.

Food Manufacturer

A company that processes raw ingredients into finished food products for consumer consumption.

Sides

Refers to supplementary items often served alongside a main dish, commonly used in food service and menu planning.

Positively

In a positive manner, often implying an affirmative, constructive, or optimistic nature in approach or outcome.