When a company has a debt-to-equity ratio close to 1 to 1,which of the following is true?
A) The company is primarily using debt financing for acquisition of its assets.
B) The creditors of the company would most likely be willing to give a loan to the company since debt is high.
C) The return to shareholders is higher than it would be if the ratio was higher.
D) The company's assets are financed almost equally by owners and creditors.
Correct Answer:
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