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Company X Has a Capital Acquisitions Ratio of 0

Question 18

Multiple Choice

Company X has a capital acquisitions ratio of 0.8.Company Y has a capital acquisitions ratio of 1.2.Which of the following statements is true?


A) Company X is more likely to have a higher quality of income ratio than Company Y.
B) Company Y is less likely to need external financing than Company X.
C) Company X is more likely to have a higher times interest earned ratio than Company Y.
D) Company X is less likely to need external financing than Company Y.

Correct Answer:

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