GenCorp Has a Total Debt of $140 Million and Stockholders

question 21

Multiple Choice

GenCorp. has a total debt of $140 million and stockholders' equity of $50 million. It also has 26 million shares outstanding, with a market price of $4.00 per share. What is GenCorp's market debt-equity ratio?

• A) 0.67
• B) 1.08
• C) 2.80
• D) 1.35

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Definitions:

Managerial Hierarchy

The arrangement of individuals within an organization in a series or levels of management, from the highest to the lowest rank.

Importance

The state or fact of being of great significance or value.

Crystallized Cognitive Ability

Represents the ability to use learned knowledge and experience, an aspect of intelligence that tends to improve with age.

Intellectual Ability

the capacity to perform mental activities such as reasoning, problem-solving, and learning.