Debt-to-equity ratio

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Virtual Banality Broadcasting Corp. has a debt-to-equity (D/E) ratio of 1.75 compared with the industry median average D/E ratio of .5. This means that the company

A. is less efficient in managing its assets than an average firm in the industry

B. has more financial risk than an average firm in the industry

C. has a higher quick ratio than an average firm in the industry

D. has less in retained earnings than an average firm in the industry

Reference no: EM13811328

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