Calculate the equity multiplier

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Reference no: EM131183584

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 $35.25 million in assets with $31.50 million in debt and $3.75 million in equity. LotsofEquity, Inc. finances its $35.25 million in assets with $3.75 million in debt and $31.50 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

Reference no: EM131183584

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