Alexander Corp

question 5

Multiple Choice

Alexander Corp.has the following balances as on December 31,2015: Calculate the debt to equity ratio.(Round your answer to two decimal points.)

• A)0.64
• B)0.04
• C)1.54
• D)1.65

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Definitions:

Inventory

Items held by a company awaiting sale or use in production, including raw materials, work-in-progress, and finished goods.

Times Interest Earned

A financial metric that measures a company's ability to meet its debt obligations by comparing its earnings before interest and taxes (EBIT) to its annual interest expense.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expense.

Income Tax Expense

The total amount of income tax a company is obligated to pay to tax authorities, calculated based on its taxable income.