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Question 24 Below is select ratio information for Company A and Company B: 0.34 pts Company A Company B 2020 2019 2020 2019 Debt

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Question 24 Below is select ratio information for Company A and Company B: 0.34 pts Company A Company B 2020 2019 2020 2019 Debt Ratio 56% 49% 30% 28% Times Interest Earned 12.3 11.1 8.4 8.6 All of the following are true except: Company A has more risk related to the amount of debt than Company B. Though Company B has a lower debt ratio, Company A has a better ability to cover interest payments. Company A has a better ability to pay off liabilities than Company B. Company A is better able to service their debt. The higher the debt ratio, the more risk.

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