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Q. |
Palo Alto Industries has a debt-to-equity ratio of 1.6 compared with the industry average of 1.4. This means that the company |
A. | will not experience any difficulty with its creditors. |
B. | has less liquidity than other firms in the industry. |
C. | will be viewed as having high creditworthiness. |
D. | has greater than average financial risk when compared to other firms in its industry. |
Answer» D. has greater than average financial risk when compared to other firms in its industry. |
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