CHAPTER 8 QUIZ 80 The Huck Printing Co. had sales of $10 million, Operating Income of $3 million; Aftertax income of $1 million; assets of $8 million; Stockholders' equity of $5 million; and a total debt of $3 million. If we measure Huck's financial leverage we would most likely use which of the following ratios from chapter 8? A) Debt to equity ( 60%) and Debt to Sales (30%) B) Debt to equity (60%) and equity to assets (62.5%) C) Debt to equity (60%) and debt to assets (37.5%) D) Equity to assets (62.5%) and aftertax income to debt (33.3%)
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