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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,
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 $38.00 million in assets with $33.75 million in debt and $4.25 million in equity. LotsofEquity, Inc. finances its $38.00 million in assets with $4.25 million in debt and $33.75 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) Debt ratio LotsofDebt, Inc. LotsofEquity, Inc. Calculate the equity multiplier. (Round your answers to 2 decimal places.) Equity multiplier LotsofDebt, Inc. times LotsofEquity, Inc. times Calculate the debt-to-equity. (Round your answers to 2 decimal places.) Debt-to-equity LotsofDebt, Inc. times LotsofEquity, Inc. times
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