An investor is considering investing in the long term bonds and common stock of Companies A and B. Both firms operate in the same industry. Both also pay a dividend per share of $8 and have a yield of 10 percent on their long-term bonds. Other data for the two firms follow.

Compute the debt to equity ratio, return on equity ratio, interest coverage ratio, and price/earnings (P/E) ratio, as well as the dividend yield, and comment on the results. (Round to one decimal place.)

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Total assets Total liabilities Prior year stockholders'equity Income before income taxes Interest expense Net income Earnings per share Market price of common stock CompanyA $4,800,000 2,160,000 2,120,000 576,000 194,400 136,800 6.40 80.00 CompanyB $2,160,000 1,188,000 750,000 259,200 106,920 74,800 10.00 95.00