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A Company and B Inc. are two major owners and managers of lodging and resort properties in the United States. Financial data (in millions) for
A Company and B Inc. are two major owners and managers of lodging and resort properties in the United States. Financial data (in millions) for a recent year for the two companies are as follows:
The average liabilities, stockholders' equity, and total assets were as follows:
1. Determine the following ratios for both companies (round to one decimal place after the whole percent):
- Return on total assets.
- Return on stockholders' equity.
- Times interest earned.
- Debt ratio for the most recent year.
- Ratio of liabilities to stockholders' equity for the most recent year.
2. Analyze and compare the two companies, using the information in (1).
Help appreciated!
\begin{tabular}{|l|l|l|} \hline & A & B \\ \hline Income statement Data: & & \\ \hline Interest Expense & $75 & $394 \\ \hline Income before income tax & 1,006 & 1,599 \\ \hline Net Income & 766 & 1,273 \\ \hline Balance Sheet Data: & & \\ \hline Total Assets & $8,417 & $25,051 \\ \hline Total Liabilities & 4,450 & 24,348 \\ \hline Total Stockholders equity & 3,967 & 703 \\ \hline \end{tabular}Step by Step Solution
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