The debt ratio of Jackson's Shoes is .9 and the debt ratio of Billy's Catering is 1.0. Based on this information, an investor can conclude:
A) Billy's Catering has a lower risk from its financial leverage.
B) Billy's Catering has the exact same dollar amount of total liabilities and total assets.
C) Billy's Catering finances a relatively lower portion of its assets with liabilities than Jackson's Shoes.
D) Jackson's Shoes has a higher risk from its financial leverage.
E) Jackson's Shoes has less equity per dollar of assets than Billy's Catering.
Correct Answer:
Verified
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