Wireless Communications Has a Total Asset Turnover of 2

question 8

Multiple Choice

Wireless Communications has a total asset turnover of 2.66, total liabilities of $1,004,162, and sales revenues of $7,025,000. What is Wireless's debt ratio?

• A) 38.0%
• B) 14.3%
• C) 26.7%
• D) 81.1%

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Definitions:

Stock Price

The cost of purchasing a share of a company's stock, representing the market's valuation of a single share of that company.

Time Value

The concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.

At-The-Money

At-The-Money describes an option where the strike price is identical to the current price of the underlying asset.

Put Option

A financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time.