Company a Has a High Debt to Total Assets Ratio

question 8

Essay

Company A has a high debt to total assets ratio and a high interest coverage ratio. Company B has a low debt to total assets ratio and a high interest coverage ratio. Company C has a high debt to total assets ratio and a low interest coverage ratio. Company D has a low debt to total assets ratio and a low interest coverage ratio.
Instructions
Based solely on the information provided above, which company or companies would you consider loaning money to? Explain your reasoning.

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Definitions:

Gasoline

A refined petroleum product used primarily as fuel in internal combustion engines.

Preconstruction Review Process

A regulatory procedure undertaken before the start of construction projects to assess compliance with environmental laws, zoning regulations, and other requirements.

Clean Air Act

A federal law designed to control air pollution on a national level by regulating emissions from both stationary and mobile sources.

Major Modifications

Significant changes or alterations to a system, product, or structure, often requiring considerable work and resources.