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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.

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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. LotsofDebt, Incorporated finances its $36.00 million in assets with $33.00 million in debt and $3.00 million in equity. LotsofEquity, Incorporated finances its $36.00 million in assets with $3.00 million in debt and $33.00 million in equity. Calculate the debt ratio. Calculate the equity multiplier. Calculate the debt-to-equity.

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