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An Increase in a Company's Debt-To-Equity Ratio from 1

Question 90

Multiple Choice

An increase in a company's debt-to-equity ratio from 1.20 to 1.87 means:


A) the company's liabilities have decreased during the year.
B) the company is less solvent than it was during the year.
C) the company's solvency has improved.
D) the company must have issued additional common shares.

Correct Answer:

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