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Omnimenium, an Automobile Company, Incurred a Debt of $20 Million

Question 136

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Omnimenium, an automobile company, incurred a debt of $20 million for the fiscal year of 2016. The company used that money with an additional $20 million of its own to buy out a rival company. The ratio of the company's debt to its investment is 0.5. The given scenario illustrates the analysis of _____.


A) liquidity ratios
B) profitability ratios
C) leverage ratios
D) asset management ratios

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