[Solved] As the debt ratio increases,

McqMate

Q.	As the debt ratio increases,
A.	Fewer assets are debt-financed, and the ratio of debt-to-equity increases
B.	Fewer assets are debt-financed, and the ratio of debt-to-equity decreases
C.	More assets are debt-financed, and the ratio of debt-to-equity increases
D.	More assets are debt-financed, and the ratio of debt-to-equity decreases
Answer» C. More assets are debt-financed, and the ratio of debt-to-equity increases

934

0

Do you find this helpful?

10

View all MCQs in

Security Analysis and Investment Management

Discussion

No comments yet

Related MCQs

Municipal government debt
Which of the following is true of municipal government debt?
________ ratio is the ratio of net profit to the sales.
Sharpe ratio and Treynor ratio measures which of the following:
As diversification increases, the total variance of a portfolio approaches ____________.
Which of the following is/are true if a firm has a required rate of return equal to the ROE? I. The amount of earnings retained by the firm does not affect market price or the P/E. II. The firm can increase market price and P/E by increasing the growth rate. III. The P/E ratio is inversely proportional to the ROE of the firm.
Aggressive portfolio consists of bonds: stock in the ratio of
On November 22, 2009 the stock price of WalMart was $39.50 and the retailer stock index was 600.30. On November 25, 2009 the stock price of WalMart was $40.25 and the retailer stock index was 605.20. Consider the ratio of WalMart to the retailer index on November 22 and November 25. WalMart is _______ the retail industry and technical analysts who follow relative strength would advise _______ the stock.