Go to reuters.com and enter the ticker symbol AMGN for Amgen, a biotechnology company. Find the long-term debt-to-equity and total debt-to-equity ratios. How does Amgen compare to the industry, sector, and S&P 500 in these areas? Now answer the same question for Edison International (EIX), the parent company of Southern California Edison, a utility company. How do the capital structures of Amgen and Edison International compare? Can you think of possible explanations for the difference between these two companies?

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Amgen Industry Sector LTD/Equity ratio 92.68 10.45 20.14 TD/Equity ratio 23.05 110.25 14.47 Edison International Industry Sector LTD/Equity ratio 78.88 130.55 99.29 TD/Equity ratio 153.86 110.56 89.77