Amgen's Debt to Equity Ratio Is

question 122

Multiple Choice

Amgen's debt to equity ratio is .54 while Walmart's is .68. By comparing these ratios we can conclude

• A) that Walmart is in danger of bankruptcy.
• B) that Amgen uses too little debt financing.
• C) that Walmart uses too little equity financing.
• D) very little because the firm's are in different industries.

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Definitions:

Memorized

The process of committing information to memory where it can be recalled later.

Semantic Priming

A phenomenon in which the understanding of one word helps in the faster recognition of a subsequent word with related meaning.

Spreading Activation

A cognitive process where activating one concept in the memory network triggers the activation of related concepts, facilitating information retrieval.

Shortcut

A quicker or more direct route or method than the one usually taken.