If Flagstaff Currently Maintains a

question 13

Multiple Choice

If Flagstaff currently maintains a .5 debt to equity ratio,then the value of Flagstaff as a levered firm is closest to:

• A)$114 million
• B)$100 million
• C)$111 million
• D)$140 million

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Definitions:

Percent Equivalent

A value expressed as a percentage that represents a portion of a whole.

Repeating Decimal

A decimal number in which a sequence of digits repeats indefinitely.

Decimal Notation

A numerical representation system that uses the base 10 and includes a decimal point to separate the integer part from the fractional part.

Percent Equivalent

A value representing a part of a whole as a fraction of 100.