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a. Which firm appears to be excessively leveraged? b. Which firm appears to be employing financial leverage to the most appropriate degree? c. What explanation

a. Which firm appears to be excessively leveraged?

b. Which firm appears to be employing financial leverage to the most appropriate degree?

c. What explanation can you provide for the higher price/earnings ratio enjoyed by firm B as compared with firm A?

Data table (Click on the following icon [, in order to copy its contents into a spreadsheet.)

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