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.