Question: (Assessing leverage use) Financial data for three corporations are displayed here ! a. Which firm appears to be excessively leveraged? b. Which firm appears to

(Assessing leverage use) Financial data for three corporations are displayed here ! a. Which firm appears to be excessively leveraged? b. Which firm appears to be employing financial leverage to the most appropriate degree? c. What explanation can you provide for the higher price/earnings ratio enjoyed by firm B as compared with firm A? a. Which firm appears to be excessively leveraged? (Select the best choice below) O A Firm A @ B. Firm B Og Firm MEASURE Debt ratio Times interest eamed Pricelearnings ratio FIRMA 30% 10 times 11 times FIRMB 35% 12 times 13 times FIRM C 50% 9 times 8 times

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