13 Which of the following statements is true of the debt to equity ratio? If the...
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13 Which of the following statements is true of the debt to equity ratio? If the debt to equity ratio is less than 1, then the company is financing more assets with debt than with equity. If the debt to equity ratio is greater than 1, then the company is financing more assets with equity than with debt. The higher the debt to equity ratio, the lower the company's financial risk. The higher the debt to equity ratio, the greater the company's financial risk. 13 Which of the following statements is true of the debt to equity ratio? If the debt to equity ratio is less than 1, then the company is financing more assets with debt than with equity. If the debt to equity ratio is greater than 1, then the company is financing more assets with equity than with debt. The higher the debt to equity ratio, the lower the company's financial risk. The higher the debt to equity ratio, the greater the company's financial risk.
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Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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