GenCorp Has a Total Debt of $140 Million and Stockholders

question 45

Multiple Choice

GenCorp has a total debt of $140 million and stockholders' equity of $50 million.It also has 25 million shares outstanding,with a market price of $3.50 per share.What is GenCorp's market debt-equity ratio?

• A)0.36
• B)0.63
• C)1.02
• D)1.60

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Definitions:

Statement Of Income

A financial document that reports a company's financial performance over a specific period, detailing revenues, expenses, and net income.

Merchandising Company

A business entity that purchases goods in a finished condition and sells them without further processing.

Operating Expenses

The costs associated with running a business's core activities on a day-to-day basis, excluding the cost of goods sold.

Non-Operating Items

Income or expenses that are not related to a company's core business operations, often including gains or losses from investment or interest expenses.