Company A has current assets of $42 billion and current liabilities of $31 billion.Company B has current assets of $2.7 billion and current liabilities of $1.8 billion.Which of the following statements is correct,based on this information?
A) Company A is less likely than Company B to have sufficient working capital to meet its short-term needs.
B) Company A has greater leverage than Company B.
C) Company A has less leverage than Company B.
D) Company A and Company B have roughly equivalent enterprise values.
Correct Answer:
Verified
Q36: Which of the following is NOT considered
Q45: A public company has a book value
Q48: Use the table for the question(s)below.
Income Statement
Q51: Use the table for the question(s)below.
Income Statement
Q55: GenCorp has a total debt of $140
Q65: Use the table for the question(s) below.
Balance
Q68: Which ratio would you use to measure
Q69: Use the table for the question(s) below.
Balance
Q72: Use the table for the question(s) below.
Q75: What will be the effect on the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents