10 multiple choice questions.
1. (TCO A) Which of the following statements is CORRECT?
2. (TCO G) A security analyst obtained the following information from Prestopino Products’ financial statements:
3. TCO G) Beranek Corp. has $410,000 of assets, and it uses no debt—it is financed only with common equity. The new CFO wants to employ enough debt to bring the debt/assets ratio to 40%, using the proceeds from the borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio?