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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 3-6 Debt Management Ratios (LG3-3)
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 $33.00 million in assets with $31.75 million in debt and $1.25 million in equity. LotsofEquity, Inc. finances its $33.00 million in assets with $1.25 million in debt and $31.75 million in equity.
Calculate the debt ratio. (Round your answers to 2 decimal places.)
\table[[,Debt ratio],[LotsofDebt, Inc.,%
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