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As the debt ratio increases,

Question:

As the debt ratio increases,

A.

Fewer assets are debt-financed, and the ratio of debt-to-equity increases

B.

Fewer assets are debt-financed, and the ratio of debt-to-equity decreases

C.

More assets are debt-financed, and the ratio of debt-to-equity increases

D.

More assets are debt-financed, and the ratio of debt-to-equity decreases

Answer» c. More assets are debt-financed, and the ratio of debt-to-equity increases

Note: The above multiple-choice question is for all general and Competitive Exams in India