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:

Digital Removal

The physical extraction or elimination of something, often medical, using fingers.

High-Fiber Diet

A diet rich in dietary fiber found in fruits, vegetables, and whole grains, known to support digestive health.

Dorsal Recumbent

Dorsal recumbent position is a medical term describing a patient lying on their back with their knees bent and feet flat, commonly used for abdominal examinations.

Sims' Position

A body position where the patient lies on their left side with the right knee and thigh drawn up, often used in medical exams or procedures.