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Operating Income 986 Interest Expense 489 7.1 75 You are analyzing the leverage of two firms and you note the following (all values in millons

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Operating Income 986 Interest Expense 489 7.1 75 You are analyzing the leverage of two firms and you note the following (all values in millons of dollars) Debt Book Equity Market Equity Firm A 502.7 3034 401.9 Firm B 80.7 33.4 38 3 a. What is the market debt-to-equity ratio of each firm? b. What is the book debt-to-equity ratio of ench firm? c. What is the interest coverage ratio of each firm? d. Which firm will have more difficulty meeting its debt obligations? a. What is the market debt-to-equity ratio of each firm? The market debt-to-equity ratio for Fimm Ais (Round to two decimal places.) The market debt-to-equity ratio for Firm Bis (Round to two decimal places) b. What is the book debt-to-equity ratio of each firm? The book debt-to-equity ratio for Fim Als (Round to two decimal places) The book debt-to-equity ratio for Fim Bin (Round to two decimal places) c. What is the interest coverage ratio of each firm? The interest coverage ratio for Firm Ais (Round to two decimal places) The interest coverage ratio for Firm Bis (Round to two decimal places d. Which firm will have more difficulty meeting its debt obligations? (Selact from the drop down monu)

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