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 $32.00 million in assets with $30.00 million in debt and $2.00 million in equity. LotsofEquity, Incorporated finances its $32.00 million in assets with $2.00 million in debt and $30.00 million in equity.

Calculate the debt ratio.

Calculate the equity multiplier.

Calculate the debt-to-equity.