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

You are analyzing the leverage of two firms and you note the following(all values in millions of dollars):
Debt
Book Equity
Market Equity
Operating Income
Interest Expense
Firm A
504.2
298.3
403.2
98.8
51.3
Firm B
78.3
36.2
41.7
8.5
7.4
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?

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