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If company A has a debt-to-total-assets ratio of 60% and company B has a debt-to-total-assets ratio of 55%, which of the following statements is true?

If company A has a debt-to-total-assets ratio of 60% and company B has a debt-to-total-assets ratio of 55%, which of the following statements is true?

one:

a. 60% of the assets of Company A are financed by creditors. If company A asked for more money at the bank, they would likely get it.

b. neither company A nor company B would likely be granted a loan because their debt-to-total-assets ratio is a little too high

c. 55% means that for every dollar of shareholders equity, the company has 55 cents of assets

d. 40% of the assets of Company A are financed by creditors. If company A asked for more money at the bank, they would likely get it.

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