Based on the information in Exhibit 3, the credit rating of DCM Group (a hypothetical company in
Question:
Based on the information in Exhibit 3, the credit rating of DCM Group (a hypothetical company in the European food & beverage sector) is most likely:
A. Lower than AB plc.
B. Higher than AB plc.
C. The same as AB plc.
Transcribed Image Text:
EXHIBIT 3 DCM Group and AB plc Selected Financial Ratios for 20X0 Total Debt/Total Capital (%) Company AB plc DCM Group European Food, Beverage, and Tobacco median 0.2 42.9 42.4 FFO/Total Return on Debt Capital (%) (%) 84.3 0.1 22.9 8.2 23.6 6.55 Total Debt/ EBITDA 1.0 3.2 2.85 EBITDA Interest Coverage (x) 13.9 3.2 6.45
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