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What Ismost Likely to Happen as a Company's Debt to Owners

Question 69

Multiple Choice

What ismost likely to happen as a company's debt to owners' equity approaches 100%?


A) It will be easier to service current debts.
B) It will be more difficult to borrow money.
C) It will have more frequent sales of inventory.
D) It will have improved return on investment for owners.
E) It will have a decreased return on sales.

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