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When your firm's debt-to-equity ratio exceeds 4, the long term debt interest rate is 3%. True False

Question

When your firm's debt-to-equity ratio exceeds 4, the long term debt interest rate is 3%. True False
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Solution 1

False. The debt-to-equity ratio of a firm does not directly determine the interest rate on long-term debt. The interest rate is typically determined by the creditworthiness of the firm, market conditions, and other factors. A high debt-to-equity ratio may indicate a higher risk to lenders, which cou Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.

Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
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