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The Debt Ratio of Jade Co

Question 124

Multiple Choice

The debt ratio of Jade Co.and Emerald Inc.are 30% and 51% respectively.This information indicates that:


A) Jade Co.has a higher asset turnover than Emerald Inc.
B) Jade Co.'s operations are financed primarily with debt.
C) Emerald Inc.has a lower financial leverage than Jade Co.
D) Emerald Inc.'s operations are financed primarily with debt.

Correct Answer:

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