1.

Galaxy United, Inc. 2009 Income Statement ($ inthousands)
Net sales	$5,750
Less: Cost of goods sold	4,070
Less: Depreciation	430
Earnings before interest and taxes	1,250
Less: Interest paid	29
Taxable Income	1,221
Less: Taxes	427
Net income	$ 794

Galaxy United, Inc. 2008 and 2009 Balance Sheets ($ in thousands)
	2008	2009			2008	2009
Cash	$ 65	$ 170		Accounts payable	$1,330	$1,180
Accounts rec.	970	830		Long-term debt	720	530
Inventory	1,490	1,970		Common stock	$3,035	$3,386
Total	$2,525	$2,970		Retained earnings	940	1,234
Net fixed assets	3,500	3,360
Total assets	$6,025	$6,330		Total liab. & equity	$6,025	$6,330

What is the debt-equity ratio for 2009?

.44 .27 .24 .47 .37

2.The difference between the present value of an investments future cash flows and its initial cost is the:

discounted payback period. payback period. net present value. internal rate of return. profitability index.