It would be a good indicator for a firm if the total assets to debt ratio is ___________.

High

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Low

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average

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None of these

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Solution

The correct option is A
High

It will be a good indicator for a firm if the total assets to debt ratio is high as the external liabilities would be lower compared to the total assets.

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Similar questions

It establishes a relationship between total assets and total long-term debts. This ratio is ____________.

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