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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
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 $ million in assets with $ million in debt and $ million in equity. LotsofEquity, Incorporated finances its $ million in assets with $ million in debt and $ million in equity.
Calculate the debt ratio.
Calculate the equity multiplier.
Calculate the debttoequity.
Complete this question by entering your answers in the tabs below.
Debt ratio
Equity multiplier
Debt to equity
Calculate the debt ratio.
Note: Round your answers to decimal places.
tableDebt ratioLotsofDebt Incorporated,
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