Given the following information about a company:Wh
Given the following information about a company:
What is the most appropriate conclusion an analyst can make about the solvency of the company? Solvency has:
A.improved because the debt-to-equity ratio decreased.
B.deteriorated because the debt-to-equity ratio increased.
C.improved because the fixed charge coverage ratio increased.
参考解答
Ans:A.
The debt–equity ratio decreased, thereby improving solvency; the fixed charge ratio remained the same.
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