An analyst compares two companies that are

问题单项选择题

An analyst compares two companies that are identical except that Company X capitalizes its leases and Company Y writes them off as operating leases. The analyst would expect Company X' s debt-to-equity ratio, relative to Company Y's, to be:

A．

A. higher.

B．

B. the same.

C．

C. lower.

答案

参考答案：A

解析：Lease capitalization adds both current and concurrent liabilities to debt, resulting in a corresponding increase in the debt-to-equity and other leverage ratios. Thus, Company X' s ( Debt + Lease ) /Equity is greater than Company Y's Debt/Equity.