A lower value of debt to equity ratio represents:

the firm is more dependent on external funds or borrowed money

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the firm is less dependent on external funds or borrowed money

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No representation

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None of these

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Solution

The correct option is B
the firm is less dependent on external funds or borrowed money

A lower value of debt to equity ratio represents that the firm is less dependent on external funds or borrowed money.

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Similar questions

Financial planning arrives at

(a) minimising the external borrowing by resorting to equity issues

(b) entering that the firm always have significantly more fund than required so that there is no paucity of funds

(d) doing only what is possible with the funds that the firms has at its disposal

Financial planning arrives at:

(a) Minimising the external borrowing by resorting to equity issues

(b) Entering that the firm always have significantly more fund than required so that there is no paucity of funds

(c) Ensuring that the firm faces neither a shortage nor a glut of unusable funds

(d) Doing only what is possible with the funds that the firms have at their disposal

Q. Debt to Equity ratio is the ratio of debt to equity or shareholders’ funds

A greater degree to which operations are funded by borrowed money means a greater risk of bankruptcy if business declines. True or False

Q. The fund manager always invests in more than one asset class (equities, debts, money market instruments etc.) to spread the risks. It is called ______.

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A lower value of debt to equity ratio represents:

The correct option is B the firm is less dependent on external funds or borrowed money A lower value of debt to equity ratio represents that ​​​​​​the firm is less dependent on external funds or borrowed money.

The correct option is B
the firm is less dependent on external funds or borrowed money

A lower value of debt to equity ratio represents that the firm is less dependent on external funds or borrowed money.