Which of the following statements (in general) is correct? a) A low receivables turnover is desirable. b) The lower the total debt-to-equity ratio, the lower the financial risk for a firm. c) An increase in net profit margin with no change in sales or assets means a poor ROI. d) The higher the tax rate for a firm, the lower the interest coverage ratio.

Which of the following statements (in general) is correct? a) A low r

1.	Which of the following statements (in general) is correct? a) A low receivables turnover is desirable. b) The lower the total debt-to-equity ratio, the lower the financial risk for a firm. c) An increase in net profit margin with no change in sales or assets means a poor ROI. d) The higher the tax rate for a firm, the lower the interest coverage ratio.
Answer» b) The lower the total debt-to-equity ratio, the lower the financial risk for a firm.

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