Question: 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 $30.50 million in assets with $29.25 million in debt and $1.25 million in equity. LotsofEquity, Inc. finances its $30.50 million in assets with $1.25 million in debt and $29.25 million in equity.
Calculate the debt ratio. (Round your answers to 2 decimal places.)