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If Company a Has a Debt-To-Assets Ratio of 0

Question 115

Multiple Choice

If Company A has a debt-to-assets ratio of 0.73 while Company B has a debt-to-assets ratio of 0.45,which of the following statements is correct?


A) Stockholders own a smaller proportion of Company A than Company B.
B) Company A must make less profit than Company B.
C) Creditors own a smaller proportion of Company A than Company B.
D) Company A must have fewer assets than Company B.

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