FOX Company has a ratio of (total debt/total assets) that is above the industry average, and a ratio of (long term debt/equity) that is below the industry average. These ratios suggest that the firm:

FOX Company has a ratio of (total debt/total assets) that is above the industry average, and a ratio of (long term debt/equity) that is below the industry average. These ratios suggest that the firm:




a. utilizes assets effectively
b has too much equity in the capital structure
c. has relatively high current liabilities
d. has a relatively low dividend payout ratio





Answer: C


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