The debt ratio of Company A is 0.31 and the debt ratio of Company B is 0.21. Based on this information, an investor can conclude:
A. Company B has less financial leverage.
B. Company A has less financial leverage.
C. Company B has more debt than Company A.
D. Company A has 10% more assets than Company B.
E. Both companies have too much debt.
Answer: A
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Ordinary words or symbols that have taken on a secondary meaning can qualify as marks.
Answer the following statement true (T) or false (F)
Which of the following is NOT a form of pay equity?
A. Internal equity B. External equity C. Collective equity D. Individual equity
The literature emphasizes three motives for a buyout, including all of the following EXCEPT:
a. to increase access to capital markets. b. to increase managerial incentives. c. to avert a takeover. d. to realize tax-reduction benefits.
Small firms are at an advantage when competing on price.
Answer the following statement true (T) or false (F)