Question
Company A has a debt to assets ratio of 4. Company B has a debt to assets ratio of 2. What can be concluded when
Company A has a debt to assets ratio of 4. Company B has a debt to assets ratio of 2. What can be concluded when comparing these two companies? O Company A is at greater risk of meeting maturing obligations O Company B is more valuable than Company A. O Company B is at greater risk of meeting maturing obligations. O Company A has less liquidity than Company B.
On April 17 a company issues bonds at 95 with a par value of $500.000 due in 20 years. Nine years after the issue date, the company calls the entire issue at 102 and redeems it. At that time, the unamortized discount balance is $13,750. How much is the loss on the redemption date? O $O O $13,750 O $23,750 0 $486,250
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