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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.
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 $30 million in assets with $29 million in debt and $1 million in equity. LotsofEquity, Inc. finances its $30 million in assets with $1 million in debt and $29 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.) LotsofDebt, Inc. LotsofEquity, Inc. Equity multiplier times i 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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