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Evaluate the debt-to-equity ratios of three companies: Company Total Debt (in billions) Shareholder's Equity (in billions) Verizon $150 $100 Exxon Mobil $120 $200 AT&T $180
Evaluate the debt-to-equity ratios of three companies:
Company | Total Debt (in billions) | Shareholder's Equity (in billions) |
Verizon | $150 | $100 |
Exxon Mobil | $120 | $200 |
AT&T | $180 | $150 |
Requirements:
- Calculate the debt-to-equity ratio for each company.
- Interpret the debt-to-equity ratios and discuss the capital structure of each company.
- Compare the debt-to-equity ratios and assess the financial leverage of the companies.
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