Assume four companies have the following debt to assets ratios:Trent CompanyGardendale Company57%39%Palmetto Company78%Dunes Company82%All other things being equal, which company appears to have the lowest financial risk?Multiple ChoiceGardendale CompanyPalmetto CompanyDunes CompanyTrent Company

Financial ratios are those ratios which state the relative magnitude of the two chosen numerical…

Answered: Trent Company Gardendale Company 578…

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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am. 375.
If Liver Corporation has a lower price/earnings (P/E) ratio than another firm engaged in the same business, what reasons might explain these differences?
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Trent Company Gardendale Company 578 398 Palmetto Company Dunes Company 788 828 All other things being equal, which company appears to have the lowest financial risk? Multiple Choice Gardendale Company Palmetto Company