a. Calculate the debt ratio and the return on assets using the year-end information for each of
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b. Of the six companies, which business relies most heavily on creditor financing?
c. Of the six companies, which business relies most heavily on equity financing?
d. Which two companies indicate the greatest risk?
e. Which two companies earn the highest return on assets?
f. Which one company would investors likely prefer based on the risk-return relation?
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Financial and Managerial Accounting Information for Decisions
ISBN: 978-1259347641
5th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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