Q.

Which of the following statements (in general) is correct?

A. A low receivables turnover is desirable.
B. The lower the total debt-to-equity ratio, the lower the financial risk for a firm.
C. An increase in net profit margin with no change in sales or assets means a poor ROI.
D. The higher the tax rate for a firm, the lower the interest coverage ratio.
Answer» B. The lower the total debt-to-equity ratio, the lower the financial risk for a firm.
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