CORRECT ANSWER C. SINCE EASTON BANK IS SEEKING THE COMPANY THAT...

47.

Correct answer c. Since Easton Bank is seeking the company that is most likely to meet

its loan obligations, the bank should select Astor. Both the degree of financial leverage

and the debt/equity ratio are measures of debt-paying ability; Astor is below the industry

average for both measures, indicating a low level of financial risk.