This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements is correct? (Read 53 times)

jordangardner

  • Full Member
  • ***
  • Posts: 145
Which of the following statements is correct?

If one firm has a lower debt ratio than another, we can be certain that the firm with the lower debt ratio will have the higher TIE ratio, as that ratio depends entirely on the amount of debt a firm uses.


A firm’s debt ratio will not influence its profit margin and times-interest-earned ratio.


If two firms differ only in their use of debt—i.e., they have identical assets, sales, operating costs, interest rates on their debt, and tax rates—but one firm has a lower debt ratio, the firm that uses less debt will have a higher profit margin on sales.


If two firms differ only in their use of debt—i.e., they have identical assets, sales, operating costs, interest rates on their debt, and tax rates—but one firm has a lower debt ratio, the firm that uses less debt will have a lower profit margin on sales.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jordangardner on Aug 7, 2023

RodrickHac

  • Full Member
  • ***
  • Posts: 174
    • anestencream.com
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly



jordangardner

  • Member
  • Posts: 145
Reply 2 on: Aug 7, 2023
Gracias!


shewald78

  • Member
  • Posts: 340
Reply 3 on: Yesterday
Excellent

 

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

For a complete list of videos, visit our video library