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Financial data for three corporations are displayed here: a. Which firm appears to be excessively leveraged? b. Which firm appears to be employing financial leverage
Financial data for three corporations are displayed here:
a. Which firm appears to be excessively leveraged? b. Which firm appears to be employing financial leverage to the most appropriate degree? c. What explanation can you provide for the higher price/earnings ratio enjoyed by firm B as compared with firm A?
Data table MEASURE FIRMA FIRM B FIRM C INDU: Debt ratio 30% 35% 50% 3 Times interest covered 11 times 13 times 10 times 1 Pricelearnings ratio 12 times 14 times 9 times 1 (Click on the icon located on the top-right corner of the data table above in order to copy its con Print Done
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