Fox company has a ratio of (total debt/total assets) that is above the industry average,and a ratio of (long term debt/equity) that is below the industry average. These ratios suggest that the firm (M)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Quiz Q9
Fox company has a ratio of (total debt/total
assets) that is above the industry average,and
a ratio of (long term debt/equity) that is below
the industry average. These ratios suggest
that the firm (M)
Select one:
a. has too much equity in the capital
structure
b. has a relatively low dividend payout
ratio
c. utilizes assets effectively
d. has relatively high current liabilities
Transcribed Image Text:Fox company has a ratio of (total debt/total assets) that is above the industry average,and a ratio of (long term debt/equity) that is below the industry average. These ratios suggest that the firm (M) Select one: a. has too much equity in the capital structure b. has a relatively low dividend payout ratio c. utilizes assets effectively d. has relatively high current liabilities
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