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9. You are considering a stock investment in one of two firms both of which operate in the same industry. - LotsofDebt finances with:

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9. You are considering a stock investment in one of two firms both of which operate in the same industry. - LotsofDebt finances with: $30m of assets, $29m of debt and $1m of equity. LotsofEquity finances with $30m of assets, Slm of debt and $29m of equity. 1. Calculate the debt ratio for the two firms. (2 pts) 2. What does your calculation tell you? (1 pt) I

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