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Author Question: Company A has current assets of $42 billion and current liabilities of $31 billion. Company B has ... (Read 170 times)

123654777

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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?
◦ Company A has less leverage than Company B.
◦ Company A and Company B have roughly equivalent enterprise values.
◦ Company A is less likely than Company B to have sufficient working capital to meet its short-term needs.
◦ Company A has greater leverage than Company B.


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Marked as best answer by 123654777 on Jul 9, 2019

bigsis44

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