Selected financial data for Bahama Bay and Caribbean Key are as follows:

($ in millions)	Bahama Bay		Caribbean Key
	2024	2023	2024	2023
Total assets	$ 8,861	$ 9,560	$ 7,640	$ 7,507
Interest-bearing debt	3,895	4,105	1,215	980
Other liabilities	1,826	2,501	1,604	1,709
Total stockholders equity	3,137	2,954	4,821	4,818
Sales revenue	$ 6,321		$ 3,949
Interest expense	170		70
Tax expense	148		8
Net income	562		88

Required:

1-a. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year.

1-b. Which company has the higher ratio?

2-a. Calculate the times interest earned ratio for Bahama Bay and Caribbean Key for the most recent year.

2-b. Which company is better able to meet interest payments as they become due?

Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year.

Debt to Equity Ratio
	Numerator Denominator		Amounts
Bahama Bay	Total liabilities	=		=
	Total stockholders equity
Caribbean Key	Total liabilities	=		=
	Total stockholders equity

1b. Which company has the higher ratio?

2a. Calculate the times interest earned ratio for Bahama Bay and Caribbean Key for the most recent year.

Times Interest Earned Ratio
	Numerator Denominator		Amounts
Bahama Bay	Net income + Interest expense + Tax expense	=		=
	Interest expense
Caribbean Key	Net income + Interest expense + Tax expense	=		=
	Interest expense

2b. Which company is better able to meet interest payments as they become due?