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3. Barry Computer Company financial statements are as follows: Barry Computer Company: Balance Sheet as of December 31, 2007 (In Thousands) Barry Computer Company: Income

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3. Barry Computer Company financial statements are as follows: Barry Computer Company: Balance Sheet as of December 31, 2007 (In Thousands) Barry Computer Company: Income Statement for Year Ended December 31, 2007 (In Thousands) Barry's current ratio is..., days sales outstanding (DSO) is..., total asset turnover is...., Debt to total asset ratio is .... times-interest-earned (TIE) is...., and return on equity (ROE) is..... A. 2.98 times; 75.4 days; 2.5 times; 63.5%;3.43 times and 6.76% respectively. B. 3.2 times; 79.2 days; 1.9 times; 63%;2.45 times and 7.25% respectively. C. 1.98 times; 76.3 days; 1.7 times; 61.9%;2.86 times and 7.56% respectively. D. none of the above. II. Capital Structure: 4. Firms HL and LL are identical except for their leverage ratios and interest rates on debt. Each has $20 million in assets, earned $4 million before interest and taxes in 2003, and has a 40% federal-plus-state tax rate. Firm HL, however, has a leverage ratio (D/TA) of 50% and pays 12% interest on its debt, whereas LL has a 30% leverage ratio and pays only 10% interest on debt. The return on equity (ROE) for firm HL is and for firm LL is.... A. 16.8% and 14.6% respectively. B. 28% and 24.3% respectively. C. 8.4% and 14.6% respectively. D. 28.6% and 20% respectively. E. None of the above

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