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ABC Ltd. has a Debt Equity Ratio of 1.5 as compared to 1.3 Industry average. It means that the firm has:

<p><strong>(a) Higher Liquidity,</strong></p> <p><strong> (b)Higher Financial Risk,</strong></p> <p><strong>(c)Higher Profitability,</strong></p> <p><strong>(d)Higher Capital Employed.</strong></p> <p> </p>

Accounting Financial Analysis Financial Management
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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/22
Upvote (3) Views (16) Followers (10) Answers (8) Report Question
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FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

answer b 

Ahmed Abd Alwahab Awad Ibrahim
by Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

The right answer is #

 

b)Higher Financial Risk,

Tanveer Qureshi
by Tanveer Qureshi , Director , Qureshi Associates

Option-B (Higher Financial Risk) is appropriate risk.

imran Noor -
by imran Noor - , Audit Officer , Auditor General of Pakistan

The correct answer is (b)

Kenneth Arvell Auman
by Kenneth Arvell Auman , Accountant , Empire Aviation Group FZCO

B. Higher Financial Risk

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

b

Khurrum Iqbal
by Khurrum Iqbal , Accountant , Akun Logistic Services

B. is the right answer, since industry average is low, for the sake of this question. 

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