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 B has more total assets than Company A.
C) Company A has a lower times interest earned ratio and thus the analyst is not worried about
the amount of debt.
D) 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
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a. intensify b. deintensify c. neutralize d. mask
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Which of the following is not a required assumption for the analysis of variance?
a. The random variable of interest for each population has a normal probability distribution. b. The variance associated with the random variable must be the same for all populations. c. At least 2 populations are under consideration. d. Populations under consideration have equal means.
malicious prosecution can occur if a party initiates a lawsuit out of malice
a. true b. false