An Analyst Is Evaluating Two Companies,A and B

question 7

Multiple Choice

An analyst is evaluating two companies,A and B.Company A has a debt ratio of 50% and Company B has a debt ratio of 25%.In his report,the analyst is concerned about Company B's debt level,but not about Company A's debt level.Which of the following would best explain this position?

• A) Company B has much higher operating income than Company A.
• B) Company A has a lower times interest earned ratio and thus the analyst is not worried about the amount of debt.
• C) Company B has a higher operating return on assets than Company A, but Company A has a higher return on equity than Company B.
• D) Company B has more total assets than Company A.

Gain knowledge of prostate-related conditions and their coding.

Become familiar with the general demographic and statistical information related to genitourinary conditions, including prostate size and cancer statistics.

Understand the process and implications of loaning cash and receiving notes receivable.

Ability to journalize credit card transactions and recognize service charges and finance charges.

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Definitions:

AC

Average Cost; the total cost of production divided by the quantity produced, indicating the cost per unit of output.

Monopoly

An economic situation where a sole seller dominates the market by providing a product that has no closely comparable substitutes.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price level and period.

Price

The sum projected, mandated, or allocated in money for acquiring something.