Company A has current assets of $42 billion and current liabilities of $31 billion.Company B has current assets of $2.7 billion and current liabilities of $1.8 billion.Which of the following statements is correct,based on this information?
A)Company A is less likely than Company B to have sufficient working capital to meet its short-term needs.
B)Company A has greater leverage than Company B.
C)Company A has less leverage than Company B.
D)Company A and Company B have roughly equivalent enterprise values.
E)Company A is more likely than Company B to have sufficient working capital to meet its short-term needs.

Question

Quizplus · Accepted Answer

The Answer of Company A has current assets of $42 billion and current liabilities of $31 billion.Company B has current assets of $2.7 billion and current liabilities of $1.8 billion.Which of the following statements is correct,based on this information?
A)Company A is less likely than Company B to have sufficient working capital to meet its short-term needs.
B)Company A has greater leverage than Company B.
C)Company A has less leverage than Company B.
D)Company A and Company B have roughly equivalent enterprise values.
E)Company A is more likely than Company B to have sufficient working capital to meet its short-term needs.

Company a Has Current Assets of $42 Billion and Current