Please use the following information for the next 3 questions.

You are given the information of firm A and B for their performance evaluation. Firm A B Sales 15 20 EAT 2 2 Total Assets 25 40 Stockholders Equity 10 10 Suppose the industry average of net profit margin ratio, total asset turnover and equity multiplier is around 10%, 0.58 times and 2.5 respectively.

Question 18

0 / 5 points

Which firm appears to have problems? Question options: Firm A has problems. None of them presents problems. Firm B has problems. Both of them have problems.

Question options:

Question 19

0 / 5 points

What is the debt ratio of firm A?

Question options:

	0.6
	0.4
	2.5
	0.8