What is the value of the new loan

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Q1. Our company had a debt to equity ratio of 40% last year. Equity has remained static at €200 million but a new loan has increased the ratio for this year to 55%. What is the value of the new loan?

a. €20 million

b. €30 million

c. €25 million

d. €15 million

Q2. Which of the following conditions would describe a business segment?

a. A corporation who is using a business segment is based on competition instead of diversification.

b. A business segment can be regarded as a company that operates in several different industries.

c. Each business segment's expenses and revenues are not accounted for separately.

d. A large corporate may have several segments and each business segment produces similar products.

Q3. Which of the following conditions would not indicate that two business segments should be classified as a single operating segment?

a. They have similar amounts of intersegment revenues or expenses.

b. They have similar production processes.

c. They have a similar distribution of products.

d. They have similar products or services.

Reference no: EM133111610

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