Q. As the debt ratio increases, (Solved)
1. Fewer assets are debt-financed, and the ratio of debt-to-equity increases
2. Fewer assets are debt-financed, and the ratio of debt-to-equity decreases
3. More assets are debt-financed, and the ratio of debt-to-equity increases
4. More assets are debt-financed, and the ratio of debt-to-equity decreases
- c. More assets are debt-financed, and the ratio of debt-to-equity increases