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You are analyzing the leverage of two firms and you note the following ( all values in millions of dollars ) : table [
You are analyzing the leverage of two firms and you note the following all values in millions of dollars:
tableDebt,Book Equity,Market Equity,Operating Income,Interest ExpenseFirm AFirm B
a What is the market debttoequity ratio of each firm?
b What is the book debttoequity ratio of each firm?
c What is the interest coverage ratio of each firm?
d Which firm will have more difficulty meeting its debt obligations?
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