The total debt and stockholders equity for three companies follows. The companies are described as follows: General

The total debt and stockholders’ equity for three companies follows. The companies are described as follows:

• General Electric is a multinational technology and services company and is a large, well-established company.
• Google is a fast-growing company focusing on Internet search.
• Amgen is a biotechnology company pioneering the development of products based on advances in recombinant DNA.

1. Compute debt-to-equity ratios for each company for 2004 and 2011.
2. Discuss the differences in the ratios across firms.
3. Discuss the changes in individual company ratios from 2004 to2011.

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Total Debt Stockholders' Equity (in mllions) General Electric $599,108 $623,303 $118,134 $110,821 Google Amgen 2011 2004 2011 2004 11,610 29,842 285 9,516 46,241 19,029 589 19,705