11. An analyst observes the following data for two companies: Which of the following choices best describes reasonable conclusions that the analyst might make about the two companies' ability to pay their current and long-term obligations? A. Company A's current ratio of 4.0 indicates it is more liquid than Company B, whose current ratio is only 1.2 , but Company B is more solvent, as indicated by its lower debt-to-equity ratio. B. Company A's current ratio of 0.25 indicates it is less liquid than Company B, whose current ratio is 0.83 , and Company A is also less solvent, as indicated by a debt-to-equity ratio of 200 percent compared with Company B's debt-to-equity ratio of only 30 percent. Chapter 6 Financial Analysis Techniques 279 C. Company A's current ratio of 4.0 indicates it is more liquid than Company B, whose current ratio is only 1.2 , and Company A is also more solvent, as indicated by a debt-to-equity ratio of 200 percent compared with Company B's debt-to-equity ratio of only 30 percent