QUESTION 14 Not yet answered Points out of i .00 PFlag question Autok Ball Beari

Question

QUESTION 14 Not yet answered Points out of i .00 PFlag question Autok Ball Bearings has a debt-to-total-assets ratio of 0.61 and Aladdin Automotive has 0.99. Which of the following statements is true? Select one: A. Autok Ball Bearings would likely be able to borrow money at a lower interest rate than would Aladdin Automotive. O B. Aladdin Automotive has more total debt than does Autok Ball Bearings. C. Aladdin Automotive is able to bring ts product to market more effciently than Autok Ball Bearings. O D. Aladdin Automotive reported more dollars of profit than Autok Ball Bearings. Previous page Next page

Explanation / Answer

First option is correct.

Companies with lower debt to total assets ratio find it easy to get loan at lower rate of interest compared with a comapny having higher debt to total assets ratio.

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