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What will a higher debt-equity ratio indicate?

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

It will indicate a risky financial position from the long-term point of view, as it indicates that a higher proportion of funds invested in the business is provided by long-term lenders.


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Previous PostQuick ratio of a company is 1.5: 1. State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company.
Next PostWhat does a low proprietary ratio indicate?

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