Final answer:
The leverage ratio is 1:3, the debt-equity ratio is 1:3, the capital structure consists of 25% debt and 75% stock, and the liquidity ratio is a measure of a company's ability to meet short-term obligations.
Step-by-step explanation:
a) The leverage ratio is the ratio of debt to equity in a company's capital structure. In this case, the buyer is using 25% debt and 75% stock to finance the acquisition of the target. Therefore, the leverage ratio would be 25:75, or 1:3.
b) The debt-equity ratio is the ratio of debt to equity in a company's capital structure. In this case, the buyer is using 25% debt and 75% stock to finance the acquisition of the target. Therefore, the debt-equity ratio would be 25:75, or 1:3.
c) Capital structure refers to the mix of debt and equity used by a company to finance its operations. In this case, the buyer is using 25% debt and 75% stock to finance the acquisition of the target, which represents the capital structure of the transaction.
d) The liquidity ratio measures a company's ability to meet its short-term obligations. It is not directly related to the financing of the acquisition, but rather the buyer's overall financial position.