Selected financial data for these two close competitors in the home building industry are provided below: ($ in millions) Company A Company B Total assets $40,930 $33,000 Total liabilities 21,500...


Selected financial data for these two close competitors in the home building industry are provided below:


















































($ in millions)Company ACompany B
Total assets$40,930$33,000
Total liabilities21,50013,990
Total stockholders' equity19,43019,010
Sales$66,174$47,240
Interest expense700350
Tax expense1,3901,070
Net income2,6101,790


1-a.Calculate the debt to equity ratio for Company A and Company B. (Round your answers to 2 decimal places.)





























Debt to Equity Ratio
Company A
Company B




1-b.Which company has the higher ratio?








  • Company A






  • Company B




    2-a.Calculate the times interest earned ratio for Company A and Company B.(Round your answers to 1 decimal place.)

































    Time Interest Earned Ratio
    Company Atimes
    Company Btimes




    2-b.Which company is better able to meet interest payments as they become due?




    • Company A





    • Company B










Jun 08, 2022
SOLUTION.PDF
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
Have files?