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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 498.2 Firm
You are analyzing the leverage of two firms and you note the following (all values in millions of dollars): Debt Firm A 498.2 Firm B 80.9 Book Equity Market Equity 404.4 38.3 299.6 36.5 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? Operating Income 98.3 7.7 Interest Expens 51.9 6.9 (n 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.)
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