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Leverage implies that a company contains debt financing contains equity financing has a high current ratio has a high earnings per share The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. x. What is the ratio of sales to total assets for Diane Company? 1.00 2.94 0.18 0.34 y. What is the price earnings ratio for Diane Company? 8.0 times 2.5 times 4.0 times 6.0 times

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