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Company a Has a High Debt to Total Assets Ratio

Question 8

Essay

Company A has a high debt to total assets ratio and a high interest coverage ratio. Company B has a low debt to total assets ratio and a high interest coverage ratio. Company C has a high debt to total assets ratio and a low interest coverage ratio. Company D has a low debt to total assets ratio and a low interest coverage ratio.
Instructions
Based solely on the information provided above, which company or companies would you consider loaning money to? Explain your reasoning.

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Company B is the most solvent and the be...

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