Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 66

Moffett Company earned a 16 percent return on its total assets.urrent liabilities are 10 percent of total assets.ong-term bonds carrying an 11 percent coupon rate are equal to 30 percent of total assets.here is no preferred stock.s this application of leverage favorable or unfavorable from the viewpoint of Moffett's stockholders