What does a strong equity ratio indicate? A. A high percentage of total assets are financed...

What does a strong equity ratio indicate?

A. A high percentage of total assets are financed by liabilities or debt as opposed to shareholders or owner’s equity.
B. A company has a strong cash position.
C. A high percentage of total assets are financed by shareholders or owner’s equity as opposed to liabilities or debt.
D. Investors are willing to pay a higher share price for every dollar in earnings per share.

Solutions

Expert Solution

Answer is C. A high percentage of total assets are financed by shareholders or owner’s equity as opposed to liabilities or debt.

This shows that company has lower financial risk

ekkarill92 answered 2 years ago

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