Companies have the opportunity to use varying amounts of different sources of financing to acquire their assets, including internal and external sources, and debt (borrowed) and equity funds. Which of the following is considered a financially leveraged firm? OA company that uses only equity to finance its assets OA company that uses debt to finance some of its assets Which of the following is true about the leveraging effect? O Interest on debt is a tax deductible expense, which means that it can reduce a firm's taxable income and tax obligation Interest on debt can be deducted from pre-tax income, resulting in a greater taxable income and a smaller available operating income. Purple Panda Products Inc. has a total asset turnover ratio of 6.00x, net annual sales of $25 millon, and operating expenses of $11.25 million (including depreciation and amorturation). On its current balance sheet and income statement, respectively, a reported total debt of $2.5 million, on which it pays 7% interest on its outstanding debt. To analyze a company's financial leverage situation, you need to measure the firm's debt management ratios. Based on the preceding information, what are the values for Purple Panda's debt management ratios (Note: Do not round intermediate calculations.) Ratio) Debt ratio Times interest-earned rate Value Purple Panda Products Inc. raises around from credears for each dollar of equity Influenced by a firm's ability to make interest payments and pay back its debt, if all else is equat, creditors would prefer to give loans to companies with debt ratos