Which of the following statements is true for leverage?
A) asset turnover ratio measures financial leverage
B) leverage always increases profitability
C) leverage is shown in proportion of total assets relative to total equity
D) the higher the debt to equity ratio, the higher the leverage
D .D) Leverage is directly related to the debt ratio. The higher the debt ratio, the higher the leverage.
Business
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Indicate whether the statement is true or false.
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Cycle inventory exists because producing or purchasing in large lots allows a stage of the supply chain to exploit economies of scale and increase cost
Indicate whether the statement is true or false.
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