Question: When a firm's long - term debt - equity ratio is 0 . 9 8 , the firm: Question 1 2 Answer a . has

When a firm's long-term debt-equity ratio is 0.98, the firm:
Question 12Answer
a.
has too much long-term debt in relation to leases.
b.
has as much in long-term liabilities as in equity.
c.
has less long-term debt than equity.
d.
is nearing insolvency.

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