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The debt ratio of Company A is 0.31 and the debt ratio of Company B is 0.21. Based on this information, an investor can conclude:
The debt ratio of Company A is 0.31 and the debt ratio of Company B is 0.21. Based on this information, an investor can conclude:
Multiple Choice
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Company B has more debt than Company A.
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a)Company B has less financial leverage.
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b)Company A has less financial leverage.
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c)Company A has 10% more assets than Company B.
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d)Both companies have too much debt.
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