Financial Leverage Ratios (Answer all Please!)

The Boxed section has this

Debt Ratio : 47.62, 59.52, 136.90 or 77.38 Panda Products Corps Raises around 1.47, 2.06,1.76 or 59.52 last question is Low or High

2. Financial leverage ratios Aa Aa Companies use different sources for financing their assets-internal resources as well as external resources, and debt (borrowed) as well as equity funds. Aunt Dottie's Linen Inc. reported no long-term debt in its most recent balance sheet. A company with no debt on its books is referred to as: A company with no financial leverage, or an unleveraged company A company with financial leverage, or a leveraged company Which of the following is true about the leveraging effect? O Interest on debt can be deducted, leading to lower taxable income and lower taxes. Interest on debt can be deducted, leading to higher taxable income and a lower available operating income. Panda Products Corp. has a total asset turnover ratio of 8.50, and it generated net annual sales of $25 million while incurring operating expenses of $11 million (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $1.75 million on which it pays 7% interest on its outstanding debt. To analyze a company's financial leverage situation, you need to measure the firm's debt management ratios. Based on the preceding information, what are the values for Panda Products Corp.'s debt management ratios? Ratio Value Debt ratio Times-interest-earned ratio Panda Products Corp. raises around from creditors for each dollar of equity. Influenced by a firm's ability to make interest payments and pay back its debt, if all else is equal, creditors would prefer to give loans to companies with debt ratios