If a firm has a debt to owners' equity ratio of .54 (or 54%) we can conclude that:
A) it has relied more on debt than equity to finance its operations.
B) the firm is likely to have trouble paying its short-term debts when they come due.
C) its total liabilities are less than its owners' equity.
D) the firm has expenses that are exactly 54% of its gross profit.
Correct Answer:
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