Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data:

Required:
1. Calculate the debt to equity ratio for E-travel and Pricecheck. Which company has the higher ratio?
2. Calculate the times interest earned ratio for E-travel and Pricecheck. Which company is better able to meet interest payments as they become due?

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E-Trave (S in thousands) Total assets Total liabilities Total stockholders' equity Sales Interest expense Tax expense Net income Pricecheck 2,905,9145 1,092,579 1,813.336 $3,084,905 29,944 218,141 527,541 S6,656,922 3,984.378 2,672,544 S3,033.645 66,428 120,342 421,500