Problem $39$

Part $1$

Attempt $\frac{1}{5}$ for $10$ pts$.$

Which of the following statements are correct?

Check all that apply:

The lower the debt$-$to$-$equity ratio, the lower the financial risk for a firm.

Pato Industries has an equity multiplier of $1\mathrm{.}8$ compared with the industry average of $1\mathrm{.}6.$ This means the company has better than average solvency compared to other firms in its industry.

Lower receivables turnover is desirable.

Over the years, the debt$-$to$-$asset ratio of Aqua Industries is declining. This means the company will be viewfly as having improved creditworthiness.

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