Question: w can an increase in debt - to - equity ratio affect a company? It improves the company's ability to meet short - term obligations

w can an increase in debt-to-equity ratio affect a company?
It improves the company's ability to meet short-term obligations
It increases the company's reliance on debt, increasing financial risk
t decreases the company's financial risk
t increases profitability by reducing operating costs
w can an increase in debt - to - equity ratio

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!