Selected financial data for Rescue Rooter are presented below:
2020
2019
Total liabilities$1,205,000
$952,000
Common stock250,000
225,000
Paid-in capital in excess of par--common stock150,000
135,000
Retained earnings155,000
145,000
The company's debt-to-equity ratio for 2020 is
A. increasing, which may be a cause of concern for the company.
B. increasing, which is always a good sign from the viewpoint of investors.
C. decreasing, which may be a cause of concern for the company.
D. decreasing, which is always a good sign from the viewpoint of investors.
Answer: A
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Which of the following bonds will be most sensitive to a change in interest rates if all bonds have the same initial yield to maturity?
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