write my assignment 2909

Other things held constant, the higher a firm’s total debt to total capital ratio, the higher its tie ratio will be.

b. other things held constant, the more debt a firm uses, the higher its operating margin will be.

c. other things held constant, the more debt a firm uses, the higher its profit margin will be.

d. debt management ratios show the extent to which a firm’s managers are attempting to magnify returns on owners’ capital through the use of financial leverage.

e. debt management ratios show the extent to which a firm’s managers are attempting to reduce risk through the use of financial leverage. the higher the total debt to total capital ratio, the lower the risk.