Refer to the Scenario Below to Answer the Following Questions

question 66

Multiple Choice

Refer to the scenario below to answer the following questions.
Financial Ratios (Scenario)
Jan was in a big hurry. She had just been given the assignment of reporting on the financial health of her company to the new divisional vice-president, Donna. Donna had asked Jan to provide several calculations to help her gain an understanding of the company's financial shape. Jan realized that this was a great career opportunity-one that could make or break her reputation with the new vice-president. She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to review the required calculations.
-Donna was also very interested in examining the organization's use of debt to finance its assets. Therefore, Jan needed to calculate a(n) __________ ratio.

• A) leverage
• B) activity
• C) profitability
• D) equity
• E) probability

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