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oliviaschmitt0
22.11.2019 •
Business
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.
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Ответ:
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.
Explanation:
The B company has a minor debt ratio compared with company A. Which according to the following formula, permits to conclude it has a higher operating return.
Return on equity = Debt Ratio - Total Liabilities / Total Assets.
Ответ:
M!!!
Explanation: