The Altman Company Has a Debt-To-Assets Ratio of 33

question 59

Multiple Choice

The Altman Company has a debt-to-assets ratio of 33.33 percent,and it needs to raise $100,000 to expand.Management feels that an optimal debt-to-assets ratio would be 16.67 percent.Sales are currently $750,000,and the total assets turnover is 7.5.How should the expansion be financed so as to produce the desired debt-to-assets ratio?

• A) Finance it all with equity.
• B) Finance it all with debt.
• C) Finance 20% debt,80% equity.
• D) Finance 40% debt,60% equity.
• E) Finance 50% debt,50% equity.

Identify the stages of the product life cycle and their marketing implications.

Recognize the importance and functions of customer relationship management (CRM) in marketing.

Understand the concept and application of segmentation, targeting, and positioning (STP) in marketing strategy.

Explain the use of customer-oriented metrics in evaluating marketing effectiveness.

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Definitions:

Fixed Overhead

Expenses that do not vary with production volume, including rent, salaries, and insurance.

Property, Plant, and Equipment

Long-term assets used in the operations of a business, not intended for sale.

Insurance

A financial product that provides protection against financial losses from specific risks, such as accidents, theft, or natural disasters.

Depreciation

A method to allocate the cost of a tangible asset over its useful life.