Question
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
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 | 502.2 | 300.9 | 398.8 | 101.7 | 49.8 |
| Firm B | 79.9 | 35.3 | 41.6 | 7.9 | 6.6 |
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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Biometric And Auditing Issues Addressed In A Throughput Model
Authors: Waymond Rodgers
1st Edition
1617356530, 978-1617356537
