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You have been asked to write a financial analysis report for Companies Companies Y and Z . Company Y has a debt - to -

You have been asked to write a financial analysis report for Companies Companies Y and Z. Company Y has a debt-to-equity ratio that is much lower than the industry average, with Company Z havir a debt-to-equity ratio much higher than industry average. The times interest earned ratio for Company Y is much higher than the industry average, and the ratio for Company Z is much lower.
Which one of the following statements will not be part of your financial analysis report for these two companies?
Select one:
A. Company Y is a less risky company than Company Z.
B. Company Z's lower times interest earned means that it may experience more difficulties than Company Y in obtaining attractive financing terms on new borrowings.
C. Company Y generates a larger amount of income compared to its obligatory payments to creditors than Company Z.
D. Company Y is a less leveraged company than Company Z.
You have been asked to write a financial analysis report for Companies Companies Y and Z. Company Y has a debt-to-equity ratio that is much lower than the industry average, with Company Z havir a debt-to-equity ratio much higher than industry average. The times interest earned ratio for Company Y is much higher than the industry average, and the ratio for Company Z is much lower.
Which one of the following statements will not be part of your financial analysis report for these two companies?
Select one:
A. Company Y is a less risky company than Company Z.
B. Company Z's lower times interest earned means that it may experience more difficulties than Company Y in obtaining attractive financing terms on new borrowings.
C. Company Y generates a larger amount of income compared to its obligatory payments to creditors than Company Z.
D. Company Y is a less leveraged company than Company Z.
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