Higher Debt-Equity Ratio Results in:
Lower Financial Risk
Higher Degree of Operating Risk
Higher Degree of Financial Risk
Higher EPS
A correct answer is option (C) Higher Degree of Financial Risk.
A higher debt-equity ratio results in a higher degree of financial risk.
Higher working capital usually results in
(a) higher current ratio, higher risk and higher profits
(b) lower current ratio, higher risk and profits
(c) higher equity, lower risk and lower profits
(d) lower equity, lower risk and higher profits
Higher debt-equity ratio results in:
Higher debt equity ratio (Debt/Equity) results in Equity
(a) Lower financial risk
(b) Higher degree of operating risk
(c) Higher degree of financial risk
(d) Higher EPS