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Question 15
Which of the following statements is correct?
Question 16
Which of the following would increase the likelihood that a
company would increase its debt ratio, other things held constant?
Question 17
Which of the following statements is CORRECT?
Question 18
Companies HD and LD have the same total assets, operating
income (EBIT), tax rate, and business risk. Company HD, however, has
a much higher debt ratio than LD. Also HD’s basic earning power
(BEP) exceeds its cost of debt (rd). Which of the following statements
is CORRECT?
Question 19