Debt-to-equity ratio. ( \(\mathrm{LO} 3\) )

Use the balance sheets from Albert's Hotels in E10-5A to compute the debt-to-equity ratio for 2008 and 2007. Suppose you calculated a debt ratio using debt plus equity as the denominator. Which ratio-debt to equity or debt to debt plus equity-seems easiest to interpret? As an investor, do you view the "trend" in the debt-to-equity ratio as favorable or unfavorable? Why?