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The Following Debt to Equity Ratio Is for Two Companies

Question 10

Multiple Choice

The following debt to equity ratio is for two companies in the same industry.
The following debt to equity ratio is for two companies in the same industry.   Which of the following statements is always true? A) Company A is more profitable than Company B. B) Company B is more profitable than Company A. C) Company A is more highly leveraged than Company B. D) Company B is more highly leveraged than Company A. E) None of the answer choices is correct.
Which of the following statements is always true?


A) Company A is more profitable than Company B.
B) Company B is more profitable than Company A.
C) Company A is more highly leveraged than Company B.
D) Company B is more highly leveraged than Company A.
E) None of the answer choices is correct.

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