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Paper Clip Office Supply Had $24,000,000 in Sales Last Year

Question 64

Multiple Choice

Paper Clip Office Supply had $24,000,000 in sales last year. Its total asset turnover was 3.0. Interest expense was $100,000 (5% on its $2,000,000 of debt) . The company is financed entirely with debt and common equity. What is Paper Clip's debt ratio?


A) 20%
B) 30%
C) 25%
D) 60%
E) 16%

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