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

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

Selected financial data for these two close competitors in the home building industry are provided below: ($ in millions) Total assets Total liabilities Total stockholders' equity Company A $40,870 21,460 19,410 Company B $33,050 13,900 19,150 Sales Interest expense Tax expense Net income $ 66,179 690 1,400 2,700 $ 47,230 310 1,000 1,780 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 Company B 1-b. Which company has the higher ratio? Company B 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 mes Company A Company B times 2-b. Which company is better able to meet interest payments as they become due? Company A Company B

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