Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
borteleto borteleto
wrote...
Go to Answer
Posts: 2477
Rep: 2 0
5 years ago
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.
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
Read 35 times
1 Reply
Replies
Answer verified by a subject expert
Marc18Marc18
wrote...
#1
Top Poster
Posts: 1080
Rep: 114 0
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

borteleto Author
wrote...

5 years ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
2ne1_12345
wrote...

Yesterday
Smart ... Thanks!
jamesbove
wrote...

2 hours ago
You make an excellent tutor!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1352 People Browsing
 111 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 1655
  
 814
  
 114
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 352
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?