The Debt Ratio of Company a Is

question 219

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.

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Definitions:

Integrative Approach

A holistic method that combines elements from different theories or practices to address complex issues or problems.

Asymmetric Conflict

A conflict where the parties involved possess unequal military resources or capabilities, often leading to non-traditional tactics to balance power differences.

Positive

Positive refers to characteristics, events, or outcomes that are beneficial, favorable, or desirable.

Negative Consequences

Undesirable outcomes that result from an action or decision, potentially acting as a deterrent for future similar actions.