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Lotsofequity inc finances its 3400 million in assets with

Debt Management Ratios (LG3-3)

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 $34.00 million in assets with $31.00 million in debt and $3.00 million in equity. LotsofEquity, Inc. finances its $34.00 million in assets with $3.00 million in debt and $31.00 million in equity.

Calculate the debt ratio. (Round your answers to 2 decimal places.)

Debt ratio Lots of Debt % Lots of Equity %

Calculate the equity multiplier. (Round your answers to 2 decimal places.)

Equity multiplier Lots of Debt times Lots of Equity times

Calculate the debt-to-equity. (Round your answers to 2 decimal places.)

Debt-to-equity Lots of Debt times Lots of Equity times

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Finance Basics: Lotsofequity inc finances its 3400 million in assets with

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Finance Basics: Lotsofequity inc finances its 3400 million in assets with

Reference No:- TGS02686053

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