Alden Corp

question 25

Multiple Choice

Alden Corp.has the following balances as of December 31,2019:

Calculate the debt to equity ratio.(Round your answer to two decimal points. )

• A)0)64
• B)0)92
• C)1)56
• D)2)56

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Definitions:

Corporate Raiders

Investors who buy a large stake in a corporation with the goal to gain control and make changes to increase its value and their profit.

Hostile Takeovers

Hostile takeovers occur when a company acquires another company against the wishes of the target company's management and board of directors.

WACC

Weighted Average Cost of Capital, or WACC, is a financial metric that calculates the cost of capital for a business, weighting each capital segment according to its relative proportion.

Discount Rate

This is the interest rate applied in calculating the present value of cash flows that are expected in the future, using the discounted cash flow approach.