What is true about the following?

	Opel		Polliwog
Total Assets	$	500,000	$	500,000
Current Liabilities	$	0	$	0
Long Term Liabilities	$	300,000	$	0
Common Share Capital	$	200,000	$	500,000

Multiple Choice

• The two companies have identical leverage and it is zero

• The more heavily leveraged company is Opel

• The more heavily leveraged company is Polliwog

• There is not enough information provided to assess leverage

• The two companies have identical leverage and it is negative