Question: Which statement is TRUE ? firm should try to minimize its financial leverage ratios; debt is bad. firm should try to maximize its current and

Which statement is TRUE?

firm should try to minimize its financial leverage ratios; debt is bad.

firm should try to maximize its current and quick ratios; maximum liquidity is good.

A decrease in the equity multiplier (EM) means the firm is using more debt relative to equity than it has in the past.

The green Companys current ratio increased but the quick ratio decreased. It must be that inventory increased (holding all else constant).

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