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      Question

      A firm reporting a debt-to-equity ratio of 0.69 is most

      accurately described by which of the following statements regarding its leverage position?
      A Highly leveraged Correct Answer Incorrect Answer
      B Moderately leveraged Correct Answer Incorrect Answer
      C Minimally or conservatively leveraged Correct Answer Incorrect Answer
      D Debt-free or zero leverage Correct Answer Incorrect Answer
      E Critically leveraged and risky Correct Answer Incorrect Answer

      Solution

      A 0.69 ratio means the firm has ₹0.69 debt for every ₹1 of equity, indicating a moderate level of leverage—not too risky, not overly conservative.

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