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Company A: Assets: $10M; Debt: $3M; Equity: $6M; Net Income $5M Company B: Assets: $10M; Debt: $1M, Equity: $5M; Net Income $4.5M Company A has
Company A: Assets: $10M; Debt: $3M; Equity: $6M; Net Income $5M Company B: Assets: $10M; Debt: $1M, Equity: $5M; Net Income $4.5M
| Company A has a higher Equity Multiplier |
| Company B has a higher profit margin |
| Company B has a higher Equity Multiplier |
| Company B has a greater chance of financial distress |
| Company A has a higher profit margin |
Which of the following is definitely true?
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The Evolution Of Nordic Finance
Authors: Steffen Elkiær Andersen
2011th Edition
0230241557, 978-0230241558
