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You are considering a stock investment in one of two firms (Lotsof Debt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry.
You are considering a stock investment in one of two firms (Lotsof Debt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $32.50 million in assets with $30.25 million in debt and $2.25 million in equity. LotsofEquity, Inc. finances its $32.50 million in assets with $2.25 million in debt and $30.25 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) Debt ratio 93.08 % LotsofDebt, Inc. LotsofEquity,Inc. X This is a numeric cell, so please enter numbers only. Calculate the equity multiplier. (Round your answers to 2 deci mal places.) Equity multiplier LotsofDebt, Inc. times LotsofEquity, Inc. times Calculate the debt-to-equity. (Round your answers to 2 decimal places.) Debt-to-equity times LotsofDebt, Inc. LotsofEquity, Inc times
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