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Question 13 1/ 1 point If firm A has a higher debt-to-equity ratio than firm B, then firm A has a lower equity multiplier than firm B. firm B has higher financial leverage than firm A. v o firm B has a lower equity multiplier than firm A. none of the above W Hide question 13 feedback Firm A has higher debt-to-equity ratio than firm B, then it means that firm A has relatively less equity. So any changes in the firm's value is reflected more in the change in value of equity, as the value of debt doesn't change much. So the greater change in value of equity for firm A is equivalent to greater financial leverage. Question 14 1/ 1 point Flying Tigers, Inc., has net sales of $791,000 and accounts receivables of $160,000. What is the firm's accounts receivables turnover? (Give your answer up to two decimal places) Answer: 494 v ¥ Hide question 14 feedback SOLUTION: Accts Receivable Turnover = Net Sales/AR
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