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2. In each of the following cases, explain briefly which of the two companies is likely to be characterized by the higher ratio. a. Debt-equity

2. In each of the following cases, explain briefly which of the two companies is likely to be characterized by the higher ratio.

a. Debt-equity ratio: an electronics store or a tour operator

b. Payout ratio: BigBookstore or HomeRobots

c. Ratio of sales to assets: a restaurant or a car rental company

d. Average collection period: The Power Company or Joe's FastFood

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