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You are analyzing the leverage of two firms and you note the following (all values in millions of dollars): Debt Firm A 502.5 Book

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You are analyzing the leverage of two firms and you note the following (all values in millions of dollars): Debt Firm A 502.5 Book Equity 297.3 Market Equity 402.3 Operating Income Interest Expense 101.8 49.8 Firm B 78.1 34.9 41.8 8.3 7.2 a. What is the market debt-to-equity ratio of each firm? b. What is the book debt-to-equity 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? a. What is the market debt-to-equity ratio of each firm? The market debt-to-equity ratio for Firm A is (Round to two decimal places.) The market debt-to-equity ratio for Firm B is (Round to two decimal places.) b. What is the book debt-to-equity ratio of each firm? The book debt-to-equity ratio for Firm A is (Round to two decimal places.) The book debt-to-equity ratio for Firm B is (Round to two decimal places.) c. What is the interest coverage ratio of each firm? The interest coverage ratio for Firm A is (Round to two decimal places.) The interest coverage ratio for Firm B is (Round to two decimal places.) d. Which firm will have more difficulty meeting its debt obligations? (Select from the drop-down menu.) will have more difficulty meeting its debt obligations.

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