You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $34.75 million in assets with $32.50 million in debt and $2.25 million in equity. LotsofEquity, Inc. finances its $34.75 million in assets with $2.25 million in debt and $32.50 million in equity.

Calculate the debt ratio. (Round your answers to 2 decimal places.)

Debt ratio Lots of Debt % Lots of Equity %

Calculate the equity multiplier. (Round your answers to 2 decimal places.)

Equity multiplier Lots of Debt times Lots of Equity times

Calculate the debt-to-equity. (Round your answers to 2 decimal places.)

Debt-to-equity Lots of Debt times Lots of Equity times