You are analyzing the leverage of two firms and you note the following (all values in millions

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You are analyzing the leverage of two firms and you note the following (all values in millions of dollars):

a. What is the market debt-to-equity ratio of each firm?

b. What is the book debt-to-equity ratio of each firm?

c. WTiat is the interest coverage ratio of each firm?

d. Which firm may have more difficulty meeting its debt obligations? Explain.
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Corporate Finance

ISBN: 9780132865289

2nd Edition

Authors: Jonathan Berk, Peter DeMarzo

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