Multiple Choice
The debt ratio of Company A is 0.31 and the debt ratio of Company B is 0.21.Based on this information,an investor can conclude:
A) Company B has more debt than Company A.
B) Company B has less financial leverage.
C) Company A has less financial leverage.
D) Company A has 10% more assets than Company B.
E) Both companies have too much debt.
Correct Answer:
Verified
Correct Answer:
Verified
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