Quiz Ch 04 – Comparing Financial Metrics of Companies HD and LD
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
Given two profitable companies, HD and LD, with identical total assets, total invested capital, sales, return on assets, and profit margin, and both financed solely by debt and common equity, but with Company HD having a higher total debt to total capital ratio, which of the following statements is accurate?