Question: Selected financial data for these two close competitors in the home building industry are provided below: Company Company (S in millions) Total assets Total liabilities

Selected financial data for these two close competitors in the home building industry are provided below:

Selected financial data for these two close competitors in the home building

Company Company (S in millions) Total assets Total liabilities Total stockholders' equity $ 40,940 $ 33,050 21,480 14,000 19,460 9,050 Sales Interest expense $ 66,173 $ 47,220 310 750 Tax expense Net income 1,380 2,630 1,030 1,750 1-a. Calculate the debt to equity ratio for Company A and Company B. (Round your answers to 2 decimal places.) Debt to Equity Ratio Company A CompanyB 1-b. Which company has the higher ratio? O Company Company A 2-a. Calculate the times interest earned ratio for Company A and Company B. (Round your answers to 1 decimal place.) Time Interest Earned Ratio Company A CompanyB times times 2-b. Which company is better able to meet interest payments as they become due? CompanyB Company A

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