Which of the following statements is false?
(a) The quickest way to determine whether a firm has too much debt is to calculate the debt‐to‐equity ratio.
(b) The best guideline to determine the firm’s liquidity is to calculate the current ratio.
(c) From the investor’s point of view, the rate of return on common equity is a good indicator of whether the firm is generating an acceptable return to the investor.
(d) We can determine the operating margin by expressing net income as a percentage of total sales.