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You are considering a stock investment in one of two firms (LotsofDebt, Incorporated and LotsofEquity, Incorporated), both of which operate in the same industry.
You are considering a stock investment in one of two firms (LotsofDebt, Incorporated and LotsofEquity, Incorporated), both of which operate in the same industry. LotsofDebt, Incorporated finances its $34.75 million in assets with $32.50 million in debt and $2.25 million in equity. LotsofEquity, Incorporated finances its $34.75 million in assets with $2.25 million in debt and $32.50 million in equity. Calculate the debt ratio. Calculate the equity multiplier. Calculate the debt-to-equity. Complete this question by entering your answers in the tabs below. Debt ratio Equity multiplier Debt to equity Calculate the debt-to-equity. Note: Round your answers to 2 decimal places. Debt-to-equity LotsofDebt, Incorporated LotsofEquity, Incorporated times times < Equity multiplier Debt to equity >
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