Company A has a total market cap of $1 billion and a d/e ratio of 0.75. Company
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Company A has a total market cap of $1 billion and a d/e ratio of 0.75. Company B has a market cap of $750 million and a d/e ratio of 1.5. Which of the company represents a greater risk to the owner and why?
Related Book For
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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