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Which of the Following Is/are Not True

Question 1

Multiple Choice

Which of the following is/are not true?


A) The more long-term debt in a firm's capital structure, the greater the risk that the firm will experience difficulty making the required payments when due.
B) The more long-term debt in a firm's capital structure, the greater is the risk of default or bankruptcy.
C) Financial analysts use the long-term debt ratio to assess risk related to long-term borrowing.
D) The debt-equity ratio relates long-term debt to shareholders' equity, indicating the relative mix of long-term financing obtained from lenders versus owners.
E) none of the above

Correct Answer:

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