Contemporary Engineering Economics 6th Edition by Chan Park

تمرين 2

If Company A uses more debt than Company B and both companies have identical operations in terms of sales, operating costs, etc., which of the following statements is true
(a) Company B will definitely have a higher current ratio.
(b) Company B has a higher profit margin on sales than Company A.
(c) Both companies have identical profit margins on sales.
(d) Company B's return on total assets would be higher.
TABLE Financial Statements for Kellogg Co.