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  3. the following statements relate to debt ratios and

The following statements relate to debt ratios and the ability to pay debt-identify the true...

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Accounting

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The following statements relate to debt ratios and the ability to pay debt-identify the true statement: Select one: A. If I add cash, marketable securities, investments and retained earnings together as they are presented on the Balance sheet, I will get a sense of my company's true cash position and its ability to pay down its debts. B. Decreasing my level of debt relative to equity will lead to an increase in my Return on Equity. C. A company that has only non-interest bearing current liabilities and no long-term debt will have a financial leverage ratio of 1.0. D. A company with a debt ratio of 50.0% will have a capital structure that is financed with approximately half equity and half liabilities. E. Start-up companies generally have very high debt ratios because they are making no money and owe money to everyone. Clear my choice

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