P Co is a much higher leveraged company providing greater finenciel risk for investors but potential higher retum on owners investment to its shareholders C Co's debt to equity ratio was 1.28 and P Cos was 2.54 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 Co is more profitable than P Co

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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in 20x2, C Co's total liabilities were $10,742 million and shareholders' equity was $8403 million, In 20x2, P Co's total liabilties were $16.259 million and
their shareholders' equity was $6,401 milion. Which of the following statements is false?
Multiple Choice
P Co is a much higher leveraged company providing greater financial risk for investors but potential higher retut on owners investment to
Its shareholdes
C Co's debt to equity ratio was 1.28 and P Co's was 2.54
C Co has only about 561% of its assets financed by debt while P Co has about 71.8% of assets financed by debt
C Co is more profitable than P Co
Transcribed Image Text:in 20x2, C Co's total liabilities were $10,742 million and shareholders' equity was $8403 million, In 20x2, P Co's total liabilties were $16.259 million and their shareholders' equity was $6,401 milion. Which of the following statements is false? Multiple Choice P Co is a much higher leveraged company providing greater financial risk for investors but potential higher retut on owners investment to Its shareholdes C Co's debt to equity ratio was 1.28 and P Co's was 2.54 C Co has only about 561% of its assets financed by debt while P Co has about 71.8% of assets financed by debt C Co is more profitable than P Co
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