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Acquiring funds through debt financing actually decreases the overall risk of the firm.
Acquiring funds through debt financing actually decreases the overall risk of the firm. FALSE.
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Asked 3/27/2016 7:33:06 AM
Updated 3/27/2016 8:40:02 AM
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Acquiring funds through debt financing actually decreases the overall risk of the firm. FALSE.
Added 3/27/2016 8:40:02 AM
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Questions asked by the same visitor
If a firm has a debt to owners' equity ratio of .54 (or 54%) we can conclude that: A. It has relied more on debt than equity to finance its operations. B. The firm is likely to have trouble paying its short term debts when they come due. C. Its total liabilities are less than its owners' equity. D. The firm has expenses that are exactly 54% of its gross profit.
Question
Updated 3/27/2016 8:50:44 AM
1 Answer/Comment
If a firm has a debt to owners' equity ratio of .54 (or 54%) we can conclude that: Its total liabilities are less than its owners' equity.
Added 3/27/2016 8:50:44 AM
This answer has been confirmed as correct and helpful.
A capital budget highlights a firm's spending plans for major assets, such as property, buildings, and equipment.
Question
Updated 3/27/2016 8:45:17 AM
1 Answer/Comment
A capital budget highlights a firm's spending plans for major assets, such as property, buildings, and equipment. TRUE.
Added 3/27/2016 8:45:17 AM
This answer has been confirmed as correct and helpful.
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