There was a sub-question in DB plan question asking about the sponsor’s financial status. I initially put “worse” because it’s debt/asset ratio is higher than industry average. Then I changed it to another reason - its revenue is lower than average. Now I’m thinking I would be better off staying with the old one. But I was thinking, a company with higher leverage ratio may still be profitable, however, lower revenue is definitely a bad thing. Which one do you think CFAI likes better?
either, better put both