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Problem 3 - 6 Debt Management Ratios ( LG 3 - 3 ) You are considering a stock investment in one of two firms (
Problem Debt Management Ratios LG
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 $ million in assets with $ million in debt and $ million in equity. LotsofEquity, Inc. finances its $ million in assets with $ million in debt and $ million in equity.
Calculate the debt ratio. Round your answers to decimal places.
tableDebt ratioLotsofDebt Inc.,
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