Multiple Choice
Firm A has a total debt to total assets ratio of 50% and an interest coverage ratio of 1.0.Firm B has a total debt total assets ratio of 80% and an interest coverage ratio of 10.0.Based on this limited information firm ________ appears to be in ________ debt management position than firm ________.
A) A, better, B
B) B, better, A
C) A, a comparable, B
D) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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