Answered

The fiscal 2017 financial statements of Reed Enterprises shows average net operating assets (NOA) of $4,795 million, average net nonoperating obligations (NNO) of $605 million, average total liabilities of $6,330 million, and year-end equity of $5,240 million. The company's 2017 financial leverage (FLEV) is: A. 0.144 B. 126 C. 0.115 D. 0.091 E. There is not enough information to determine the ratio.

Answer :

Answer:

Correct option is A 0.144

Explanation:

Financial leverage= (Net non-operating liabilities)/(Net operating assets- Net non-operating liabilities)

= $605/ $4795- $605

= 0.144

Other Questions