Question: Selected financial data for these two close competitors in the home building industry are provided below: (in millions) Company A Company Total assets $40,900

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

Selected financial data for these two close competitors in the home building industry are provided below: (in millions) Company A Company Total assets $40,900 $33,080 Total liabilities 21,420 13,900 Total stockholders' equity 19,480 19,100 Sales 66.175. 47,230 Interest expense 700 360 Income tax expense 1,400 1,100 Net income 2,680 1,800 1-a. Calculate the debt to equity ratio for Company A and Company 8. 1-b. Which company has the higher ratio? 2-a. Calculate the times interest earned ratio for Company A and Company B. 2-b. Which company is better able to meet interest payments as they become due? Complete this question by entering your answers in the tabs below. Req 1A Req 181 Req 2A Reg 28 Calculate the debt to equity ratio for Company A and Company B. (Round your answers to 2 decimal places.) Company A Company B Debl to Equity Ratio CHA Req 18 > < Prev 9 of 35 Next >

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