Why might a firms ratio of long-term debt to long-term capital be lower than the industry average,

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Why might a firm’s ratio of long-term debt to long-term capital be lower than the industry average, but its ratio of income-before-interest-and-taxes to debt-interest charges be lower than the industry average?

a. The firm has higher profit ability than average.

b. The firm has more short-term debt than average.

c. The firm has a high ratio of current assets to current liabilities.

d. The firm has a high ratio of total cash flow to total long-term debt.

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Essentials Of Investments

ISBN: 9780073368719

7th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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