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Interest Is Big Valley's Only Fixed Cash Charge

Question 22

Multiple Choice

  Interest is Big Valley's only fixed cash charge. Big Valley's market value of equity to book value of debt ratio = 1.5.   Big Valley's fixed asset efficiency score is ________ which is ________that of the typical firm in the industry. A) 1.8; the same as B) 1.54; lower than C) 1.94; higher than D) 2.15; higher than E) 1.32; lower than
Interest is Big Valley's only fixed cash charge.
Big Valley's market value of equity to book value of debt ratio = 1.5.
  Interest is Big Valley's only fixed cash charge. Big Valley's market value of equity to book value of debt ratio = 1.5.   Big Valley's fixed asset efficiency score is ________ which is ________that of the typical firm in the industry. A) 1.8; the same as B) 1.54; lower than C) 1.94; higher than D) 2.15; higher than E) 1.32; lower than
Big Valley's fixed asset efficiency score is ________ which is ________that of the typical firm in the industry.


A) 1.8; the same as
B) 1.54; lower than
C) 1.94; higher than
D) 2.15; higher than
E) 1.32; lower than

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