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34. How many of these ratios measure the relationship between debt and equity The debt ratio The equity (proprietorship) rati

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Solution. 34. The correct answer is c)3

Explanation: Option first, determines relationship between assets and debt, in leverage terms, so holds true. Option second, determines relationship between assets to debts, so holds true. Option third, the leverage ration does not hold true, as the total liabilities/total equity, does not hold true for given question. Option fourth, the current ratio, determines relationship between current assets to meet current debt and other obligations, valid for given question.

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