Debt Management Ratios You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $20 million in assets with $18 million in debt and $2 million in equity. LotsofEquity, Inc. finances its $20 million in assets with $5 million in debt and S15 million in equity. Calculate the debt ratio, equity multiplier, and debt-to-equity ratio for the two firms. Profitability Ratios In 2014, Farmers, Inc. announced an ROA of 7.56%, ROE of 15%, and profit margin of 18.5%. The firm had total assets of $10.5 million at year-end 2014. Calculate the 2012 values of net income available to common stockholders, common stockholders' equity, and net sales for Farmers Inc. Market Value Ratios Keyvon's market-to-book ratio is currently 2.15 times and the PE ratio is 9 times. If Keyvon's common stock is currently selling at $25 per share, what is the book value per share and earnings per share? Ratio Analysis Use the following information to complete the balance sheet below. Current ratio = 2 times Profit margin = 9% Sales = S200m. ROE = 18% Long-term debt to Long-term debt and equity = 55%