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

Author Question: Which of the following statements is correct? (Read 40 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
YES! Correct, THANKS for helping me on my review


miss_1456@hotmail.com

  • Member
  • Posts: 289
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

For a complete list of videos, visit our video library