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Assume four companies have the following debt to assets ratios: Company T 5 7 % Company E 3 9 % Company O 7 8 %

Assume four companies have the following debt to assets ratios:

Company T

57 %

Company E

39 %

Company O

78 %

Company S

82 %

All other things being equal, which company appears to have the lowest financial risk?

Multiple Choice

Company S

Company E

Company T

Company O

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