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 $37.50 million in assets with $33.50 million in debt and $4.00 million in equity. LotsofEquity, Inc. finances its $37.50 million in assets with $4.00 million in debt and $33.50 million in equity.

Calculate the debt ratio.

LotsofDebt, Inc. %

LotsofEquity, Inc %

Calculate the equity multiplier.

LotsofDebt, Inc. ______times

LotsofEquity, Inc ______times

Calculate the debt-to-equity.

LotsofDebt, Inc. ______times

LotsofEquity, Inc ______times