to a financialy leveraged firm? O Using payments on its debt, credit default can reduce shareholder wealth. n Pencil Company has a total asset turnover ratio of 8.50x, net annual sales of $25 million, and expenses of $11 million (including depreciation and amortization) On its balance sheet and income it reported total debt of $1.75 million on which it pays a 11% interest rate situation, you need to measure the firm's debt ratios. Based on the preceding inf O Type here to s