In 20X2, C Co's total liabilities were $10,742 million and shareholders' equity was $8,403 million. In 20X2, P Co's total liabilities were $16,259 million and their shareholders' equity was $6,401 million. Which of the following statements is false?
A) C Co's debt to equity ratio was 1.28 and P Co's was 2.54.
B) C Co has only about 56.1% of its assets ﬁnanced by debt while P Co has about 71.8% of assets ﬁnanced by debt.
C) P Co is a much higher leveraged company providing greater ﬁnancial risk for investors but potential higher return on owners' investment to its shareholders.
D) C Co is more proﬁtable than P Co.

Question

Quizplus · Accepted Answer

The information provided does not include any data on profitability, such as net income or return on equity, so we cannot determine which company is more profitable based on the given data about liabilities and shareholders' equity.

In 20X2, C Co's Total Liabilities Were $10,742 Million and Shareholders