A Common Leverage Ratio Is for a Company to Have

question 55

Multiple Choice

A common leverage ratio is for a company to have at least ________ times the amount of equity as it has debt.

• A) two
• B) three
• C) four
• D) five
• E) ten

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Definitions:

Sticker Price

The full retail price of a vehicle, as displayed on a sticker in the car's window; commonly used to refer to the initial asking price of goods.

GST

The Goods and Services Tax is a form of value-added tax applied to almost all goods and services purchased for use within the nation.

PST

Provincial Sales Tax; a tax levied by certain provinces in Canada on the sale of goods and services.

Percentage

A percentage is a way of expressing a number as a fraction of 100, used to describe proportions and changes in quantities.