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Question 20 2016 Using the data set below, if the industry average debt to asset ratio for comparable companies in 52%, what can we say

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Question 20 2016 Using the data set below, if the industry average debt to asset ratio for comparable companies in 52%, what can we say about FactSet's debt to assot ratio? 4 points 31-Dec 2015 (in thousands) ASSETS Current assets Cash and cash equivalents $100,000 $ 95,000 Short term investments 145,000 Accounts receivable (net) 135,000 100,000 45,000 Inventories 26,000 82,000 Other 4,000 75.000 Total current assets 375,000 432.000 Property and equipment (net) 105,000 102,000 Equity and other investments 31500 40 000 Total assets $611,500 $674,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 60,000 $ 60,000 Short-term debt 6,000 51,000 Other 25 000 25,000 91.000 136.000 Total current liabilities 300,000 310,000 Long term debt 391 000 Total liabilities 446,000 Stockholders' equity Common stock and paid in-capital Retained earnings 50.000 75.000 50,000 78.000 Equity and other investments Total assets 31,500 40,000 $511,500 $ 574,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 60,000 $ 60,000 Short-term debt 6,000 Other 51,000 25,000 25,000 Total current liabilities 91,000 136,000 Long term debt 300,000 310,000 Total liabilities 391,000 446,000 Stockholders' equity Common stock and paid in-capital 50,000 50,000 Retained earnings 75,000 78,000 Treasury stock (4,500) Total stockholders' equity 120,500 128.000 Total liabilities and stockholders' equity $511,500 $ 574,000 O A. FactSet appears to have more financial risk than comparable industry companies, OB. FactSet has good long-term solvency from what we can see Oc. FactSet will produce less profits because financial risk is high, Oo. FactSet appear to have less financial risk than comparable companies in the S&P

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