Use the following Exhibit for Questions 39 and 40
ExHibiT 4 industrial Comparative Ratio Analysis, year 20xx

-based on only the leverage ratios in Exhibit 4, the company with the highest credit risk is:
A) Company A.
B) Company b.
C) Company C.

Question

Use the following Exhibit for Questions 39 and 40
ExHibiT 4 industrial Comparative Ratio Analysis, year 20xx
 
-based on only the leverage ratios in Exhibit 4, the company with the highest credit risk is:
A) Company A. 
B) Company b. 
C) Company C.

Quizplus · Accepted Answer

Company C has the highest Debt-to-Equity ratio, which indicates a higher credit risk as it has a higher level of debt compared to equity. Company A and B have lower Debt-to-Equity ratios, indicating lower credit risk.

Use the Following Exhibit for Questions 39 and 40