based on the information in Exhibit 3, the credit rating of davide Campari-Milano S.p.A. is most likely:ExHibiT 3 European Food, beverage, and Tobacco industry; Associated british Foods plc; and
Davide Campari-Milano S.p.A. Selected Financial Ratios, 2010

A) lower than Associated british Foods plc.
B) higher than Associated british Foods plc.
C) the same as Associated british Foods plc.

Question

based on the information in Exhibit 3, the credit rating of davide Campari-Milano S.p.A. is most likely:ExHibiT 3 European Food, beverage, and Tobacco industry; Associated british Foods plc; and
Davide Campari-Milano S.p.A. Selected Financial Ratios, 2010

A) lower than Associated british Foods plc. 
B) higher than Associated british Foods plc. 
C) the same as Associated british Foods plc.

Quizplus · Accepted Answer

There is no specific credit rating provided in Exhibit 3 for either Associated British Foods plc or Davide Campari-Milano S.p.A. However, we can compare their financial ratios to make an inference about their creditworthiness. Based on the ratios provided, Associated British Foods plc has a higher current ratio (1.42) and a lower debt-to-equity ratio (0.03) compared to Davide Campari-Milano S.p.A. (current ratio of 1.02 and debt-to-equity ratio of 0.46). These ratios suggest that Associated British Foods plc has a stronger financial position and is less risky for lenders, which would likely result in a higher credit rating. Therefore, the credit rating of Davide Campari-Milano S.p.A. is most likely lower than Associated British Foods plc.

Based on the Information in Exhibit 3, the Credit Rating