Based on the information in Exhibit 2, GZ Groups (a hypothetical company) credit risk is most likely:
Question:
Based on the information in Exhibit 2, GZ Group’s (a hypothetical company) credit risk is most likely:
A. Lower than the industry.
B. Higher than the industry.
C. The same as the industry.
Transcribed Image Text:
EXHIBIT 2 European Food, Beverage, and Tobacco Industry and GZ Group Selected Financial Ratios for 20X0 GZ Group Industry median Total Debt/Total Capital (%) 47.1 42.4 FFO/Total Debt (%) 77.5 23.6 Return on Capital (%) 19.6 6.55 Total Debt/ EBITDA 1.2 2.85 EBITDA Interest Coverage (x) 17.7 6.45
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