Matthews Company Presented Below Is Selected Financial Information for Matthews

question 21

Multiple Choice

Matthews Company Presented below is selected financial information for Matthews Corporation for the most recent fiscal year ended December 31 ($ millions)
$$\begin{array} { | l | r | l | r | } \hline \text { Current assets: } & & \text { Current liabilities: } & \\ \hline \text { Cash and cash equivalents } & \$ 2,442 & \text { Accounts payable } & \$ 5,000 \\\hline \text { Short-term investment } & 1,416 & \text { Other current liabilities } & 2,777 \\\hline \text { Receivables, net } & 1,310 & \text { Total current liabilities } & 7,777 \\\hline \text { Merchandise inventories } & 5,184 & \text { Noncurrent liabilities } & 2,519 \\\hline \text { Other current assets } & 1,417 & \text { Shareholders' Equity } & 5,030 \\\hline \text { Total current assets } & 11,769 & \text { Total liabilities and shareholders' equity } & \$ 15,326 \\\hline \text { Noncurrent assets } & 3,557 & & \\\hline \text { Total assets } & \$ 15,326 & & \\\hline\end{array}$$ $$\begin{array} { | l | r | } \hline \text { Revenues } & \$ 40,339 \\\hline \text { Costs and Expenses } &\underline{ 38,889} \\\hline \text { Operating Income } & \$ 1,450 \\\hline \begin{array} { l } \text { Other income/expense (including interest expense of } \\\$ 90 ) \end{array} & \underline{( 73 ) }\\\hline \text { Income before income tax } & 1,377 \\\hline \text { Income tax expense } &\underline{ ( 151 ) }\\\hline \text { Net income } &\underline{ \$ 1,226 }\\\hline\end{array}$$ $\begin{array}{lrr} \text { Previous Year's Financial Data } &\\ \text { Total Assets } &\underline{\$13,913}\\ \text { Shareholders' Equity} &\underline{\$4,109}\\\end{array}$

The financial leverage for Matthews Corporation is ________. (Round your answer to two decimal places, X.XX.)

• A) 2.86
• B) 3.05
• C) 3.20
• D) 3.39

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Definitions:

Payoff Matrix

A payoff matrix is a table that shows the potential outcomes of different decisions made by one or more participants in a strategic situation, often used in game theory.

Credibility

The quality of being trusted and believed in, often based on a history of accuracy and reliability.

Dominant Strategy

In game theory, a strategy that is best for a player in a game regardless of the strategies chosen by the other players.

Game Trees

A graphical representation used to depict the outcomes of a game or decision-making process, showing different choices and their possible outcomes.