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You are analyzing the leverage of two firms and you note the following (all values in millions of dollars): Firm A Firm B Debt 500.0

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You are analyzing the leverage of two firms and you note the following (all values in millions of dollars): Firm A Firm B Debt 500.0 80.0 Book Equity 300.0 35.0 Market Equity 400.0 40.0 Operating Income 100.0 8.0 Interest Expense 50.0 7.0 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 Bis (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 Ais (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 Ais (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.) V will have more difficulty meeting its debt obligations

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