You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity,...
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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 $30 million in assets with $29 million in debt and $1 million in equity. LotsofEquity, Inc. finances its $30 million in assets with $1 million in debt and $29 million in equity, Calculate the debt ratio (Round your answers to 2 decimal places.) Debt ratio 097% LotsofDebt, Inc Lots ofEquity Inc Calculate the equity multiplier (Round your answers to 2 decimal places.) LotsofDebt, Inc LotsofEquity, Inc Equity multiplier O times 1.03 times Calculate the debt-to-equity. (Round your answers to 2 decimal places.) 7 LotsofDebt, Inc LotsofEquity, Inc. Debt-to-equity 29 times 30.00 times
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