The higher the debt-to-equity ratio, the less debt a company is using co finance its assets. O True O False

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 12MC: The cost of equity is _______. A. the interest associated with debt B. the rate of return required...
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The higher the debt-to-equity ratio, the less debt a company is using
to finance its assets.
True
False
Transcribed Image Text:The higher the debt-to-equity ratio, the less debt a company is using to finance its assets. True False
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