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Marriott International, Inc., and Wyndham Worldwide Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement

Marriott International, Inc., and Wyndham Worldwide Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year: x Marriott Wyndham x (in millions) (in millions) Operating profit before other expenses and interest $695 $718 Other income (expenses) 36 12 Interest expense (180) (167) Income before income taxes $551 $563 Income tax expense 93 184 Net income $458 $379 Balance sheet information is as follows: x Marriott Wyndham x (in millions) (in millions) Total liabilities $7,398 $6,499 Total stockholders equity 1,585 2,917 Total liabilities and stockholders equity $8,983 $9,416 The average liabilities, stockholders equity, and total assets were as follows: x Marriott Wyndham x (in millions) (in millions) Average total liabilities $7,095 $6,582 Average total stockholders equity 1,363 2,802 Average total assets 8,458 9,384 1. Determine the following ratios for both companies (round to one decimal place after the whole percent): a. Rate earned on total assets b. Rate earned on total stockholders equity c. Number of times interest charges are earned d. Ratio of liabilities to stockholders equity 2. Analyze and compare the two companies, using the information in (1)

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