Multiple Choice
The debt ratio of Company A is .31 and the debt ratio of Company B is .21. Based on this information, an investor can conclude:
A) Company A has a lower risk from its financial leverage.
B) Company B has more debt than Company A.
C) Company A has 10% more assets than Company B.
D) Company B has a lower risk from its financial leverage.
E) Both companies have too much debt.
Correct Answer:
Verified
Correct Answer:
Verified
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