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 $32.50 million in assets with $30.25 million in debt and $2.25 million in equity. LotsofEquity, Inc. finances its $32.50 million in assets with $2.25 million in debt and $30.25 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.)
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here