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You are considering a stock investment in one of two firms (LotsofDebt, Inc. and Lotsof Equity, Inc.), both of which operate in the same
You are considering a stock investment in one of two firms (LotsofDebt, Inc. and Lotsof Equity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $38.75 million in assets with $34.00 million in debt and $4.75 million in equity. LotsofEquity, Inc. finances its $38.75 million in assets with $4.75 million in debt and $34.00 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) LotsofDebt, Inc. LotsofEquity, Inc. Debt ratio % % Calculate the equity multiplier. (Round your answers to 2 decimal places.) Equity multiplier LotsofDebt, Inc. LotsofEquity, Inc. times times Calculate the debt-to-equity. (Round your answers to 2 decimal places.) LotsofDebt, Inc. LotsofEquity, Inc. Debt-to-equity times times
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