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HADILITIES AND SHAREHOLDERS EQUTTY As measured by Long-term debt-to-equity ratio which of the following is correct? A. Company B has more solvent (0.44) than the

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HADILITIES AND SHAREHOLDERS" EQUTTY As measured by Long-term debt-to-equity ratio which of the following is correct? A. Company B has more solvent (0.44) than the sector average (0.76) B. Company B is weaker in solvency (0.44) than the sector average (0.76) C. Company B has more solvent (0.23) than the sector average (0.50) D. Company B and the sector are equally solvent. Based on the above table, as measured by the financial leverage ratio, which of the following statement is correct. A. Company B (2.22) is more leveraged than company A (5.00). B. Company B (2.22) is more leveraged than the sector (2.70). C. Company A (5.00) is more leveraged than company B (2.22). D. None of the above Based on the above table, as measured by the cash ratio which statement is comect? A. Company B is more liquid than company A B. Sector average is more than company B C. Company A and sector average are equally liquid. D. Neither of the companies are solvent than the sector average

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