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CTFA · Question #309

CTFA Question #309: Real Exam Question with Answer & Explanation

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Question

Palo Alto Industries has a debt-to-equity ratio of 1.6 compared with the industry average of 1.4. This means that the company:

Options

  • AWill not experience any difficulty with its creditors
  • BHas less liquidity than other firms in the industry
  • CWill be viewed as having high creditworthiness
  • DHas greater than average financial risk when compared to other firms in its industry

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