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

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 24MCQ: When analyzing a companys debt to equity ratio, lithe ratio has a value that is greater than one,...
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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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