alculate the debt ratio. (Round your answers to 2 decimal places.) debt ratio Lotsofdebt Inc: % Lotsofequity Inc: % Calculate the equity multiplier. (Round your answers to 2 decimal places.) Equity Multiplier Lotsofdebt Inc: Timess Lotsodequity Inc: Times Calculate the debt-to-equity. (Round your answers to 2 decimal places.)
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 $38.00 million in assets with $33.75 million in debt and $4.25 million in equity. LotsofEquity, Inc. finances its $38.00 million in assets with $4.25 million in debt and $33.75 million in equity.
Calculate the debt ratio. (Round your answers to 2 decimal places.)
debt ratio
Lotsofdebt Inc: %
Lotsofequity Inc: %
Calculate the equity multiplier. (Round your answers to 2 decimal places.)
Equity Multiplier
Lotsofdebt Inc: Timess
Lotsodequity Inc: Times
Calculate the debt-to-equity. (Round your answers to 2 decimal places.)
Debt to Equity
Lotsofdebt Inc: Times
Lotsofequity Inc: Times
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