Question: Please help solve problem C and D You are analyzing the leverage of two firms and you note the following (all values in millions of

Please help solve problem C and D

Please help solve problem C and D You are analyzing the leverage

You are analyzing the leverage of two firms and you note the following (all values in millions of dollars): Bod Firm A Firm B Debt 499.8 78.3 Book Equity 304.1 30.9 Market Equity 400.5 39.4 Operating Income 102.6 8.4 Interest Expense 49.1 7.1 a. What is the market debt-to-equity ratio of each firm? b. What is the book debt-to-equity ratio of each firm? c. What is the EBIT/interest coverage ratio of each firm? d. Which firm may have more difficulty meeting its debt obligations? Explain. The market debt-to-equity ratio for Firm B is 1.99. (Round to two decimal places.) b. What is the book debt-to-equity ratio of each firm? The book debt-to-equity ratio for Firm A is 1.64. (Round to two decimal places.) The book debt-to-equity ratio for Firm Bis 2.53). (Round to two decimal places.) c. What is the interest coverage ratio of each firm? The interest coverage ratio for Firm Ais I. (Round to two decimal places.) The interest coverage ratio for Firm Bis . (Round to two decimal places.) d. Which firm may have more difficulty meeting its debt obligations? Explain. (Select from the drop-down menus.) has a lower coverage ratio and will have slightly more difficulty meeting its debt obligations than Enter your answer in each of the answer boxes

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