Q. XYZ Company has a ratio of (total debt/total assets) that is above the industry...
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Accounting
Q. XYZ Company has a ratio of (total debt/total assets) that is above the industry average, and a ratio of (long term debt/equity) that is below the industry average. These ratios suggest that the firm:
1.
utilizes assets effectively
2.
has too much equity in the capital structure
3.
has relatively high current liabilities
4.
has a relatively low dividend payout ratio
5.
None of the above
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