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
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