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Abbots Barber Shops and Costellos Barber Shops have the same capitalization: $1.5 million equity, $0.5 million debt. Abbots owns $1.9 million worth of equipment and
Abbots Barber Shops and Costellos Barber Shops have the same capitalization: $1.5 million equity, $0.5 million debt. Abbots owns $1.9 million worth of equipment and $100,000 in cash. Costellos owns $2 million worth of equipment. How do their leverage ratios compare? Group of answer choices Abbots is greater Costellos is greater The same No answer text provided.
A. Abbots is greater
B. Costellos is greater
C. The same
D. No answer text provided.
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