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Calculate the following debt and coverage ratios for the two companies. Discuss their financial risk and ability to cover the costs in relation to each
Calculate the following debt and coverage ratios for the two companies. Discuss their financial risk and ability to cover the costs in relation to each other.
Debt ratio
Times interest earned ratio
Calculate the following profitability ratios for the two companies. Discuss their profitability relative to one another.
Operating profit margin
Net profit margin
Return on total assets
Return on common equity
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