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	503.9503.9	304.8304.8	402.6402.6	105.7105.7	47.147.1
Firm B	83.983.9	34.134.1	40.340.3	7.77.7	7.27.2

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 EBIT/interest coverage ratio of each firm?

d. Which firm may have more difficulty meeting its debt obligations? Explain.

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.)