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 $36.00 million in assets with $33.00 million in debt and $3.00 million in equity. LotsofEquity, Inc. finances its $36.00 million in assets with $3.00 million in debt and $33.00 million in equity.
Calculate the debt ratio. (Round your answers to 2 decimal places.)
Calculate the equity multiplier. (Round your answers to 2 decimal places.)
Calculate the debt-to-equity. (Round your answers to 2 decimal places.)
Debt Ratio = Total debt (Liabilities) / Total asset
Equity Multiplier = Total...
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