higher debt - equity ratio indicates
a)high operating risk
b)low operating risk
c)high financial risk
d)low financial risk
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I think high financial risk
A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. Aggressive leveraging practices are often associated with high levels of risk.
A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. Aggressive leveraging practices are often associated with high levels of risk.
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