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XYZ Ltd. has a Debt Equity Ratio of 1.5 as compared to 1.3 Industry average. It means that the firm has:

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XYZ Ltd. has a Debt Equity Ratio of 1.5 as compared to 1.3 Industry average. It means that the firm has:

 Options:

A. Higher Liquidity
B. Higher Financial Risk
C. Higher Profitability
D. Higher Capital Employed

 

The Correct Answer Is:

  • B. Higher Financial Risk

 

Conclusion

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