MULTIPLE CHOICE QUESTIONS

A. High debt-to-equity ratio, high interest coverage ratio, stable return on equity. B. Low debt-to-equity ratio, low interest coverage ratio, volatile return on equity. ... Long-term debt $7,000 Preferred stock (100 shares) 1,000 Common stock (200 shares) 7,000 The firms’ bonds are currently selling at 80% of par, generating a current market ... ................
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