Total points: $\frac{1}{25}$

Scenario $9\mathrm{.}1.$

Dario works in finance at a healthcare start$-$up that has a higher$-$than$-$average tax burden. The chief financial officer $($CFO$)$ has asked Dario to make some

recommendations on how the company can reduce taxes without sacrificing their access to financial resources.

Refer to Scenario $9\mathrm{.}1.$ After reviewing the firm's current capital structure, Dario recommends that they increase the amount of debt they have versus the amount of assets.

Dario is advocating that they increase their

inventory turnover

financial leverage

net profit margin

interest coverage