The Debt Ratio of Jackson's Shoes Is

question 8

Multiple Choice

The debt ratio of Jackson's Shoes is .9 and the debt ratio of Billy's Catering is 1.0.Based on this information,an investor can conclude:

• A)Billy's Catering finances a relatively lower portion of its assets with liabilities than Jackson's Shoes.
• B)Billy's Catering has a lower risk from its financial leverage.
• C)Jackson's Shoes has a higher risk from its financial leverage.
• D)Billy's Catering has the exact same dollar amount of total liabilities and total assets.
• E)Jackson's Shoes has less equity per dollar of assets than Billy's Catering.

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Definitions:

Binge Eating

Eating a large amount of food within a brief period.

High-Calorie

Refers to foods or substances that are dense in calories, providing a large amount of energy per serving.

Out Of Control

A situation or behavior that is no longer manageable or within the bounds of regulation.

Lose Control

The inability to maintain power or influence over one's own actions or the situation at hand.