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Ratios: Debt to Asset Ratio
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Problem 10
Ratios: Debt to Asset Ratio
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14. Financial Statement Analysis / Ratios: Debt to Asset Ratio / Problem 2
Problem 2
How does a high debt to asset ratio impact a company's interest obligations?
A
It reduces the need for equity financing.
B
It increases interest obligations, raising financial risk.
C
It decreases interest obligations, lowering financial risk.
D
It has no impact on interest obligations.
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