Price Printing Co

question 75

Multiple Choice

Price Printing Co.had sales of $10 million,Operating Income of $3 million; After-tax income of $1 million; assets of $8 million; Stockholders' equity of $5 million; and a total debt of $3 million.If we measure Price's financial leverage we would most likely use which of the following ratios from chapter 8?

• A)Debt to equity (60%)and Debt to Sales (30%)
• B)Debt to equity (60%)and equity to assets (62.5%)
• C)Debt to equity (60%)and debt to assets (37.5%)
• D)Equity to assets (62.5%)and after-tax income to debt (33.3%)

---

Definitions:

Ad Hominem Fallacy

Rather than offering a counterargument, we target the character of the individual who presented the argument.

Earth is Flat

A debunked belief that the Earth is flat rather than an oblate spheroid.

Smells Funny

An informal expression indicating that something seems suspicious or not quite right.

Fallacy of Ambiguity

Debates featuring unclear expressions or careless linguistic constructions.