What is the "rule of thumb" for the-debt-to-total-assets ratio, and what does it mean?
A) The debt-to-equity ratio is 45%, which is a satisfactory debt-to-equity ratio.
B) The debt-to-total-assets ratio is 65%, and creditors may not provide more debt financing to the company.
C) The debt-to-total assets ratio is 50%, and creditors will provide more debt financing.
D) The debt-to-total-debt ratio is 50%, and creditors may be reluctant to provide more financing.
Correct Answer:
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