consider the information on the three firms a b and c 540109

Consider the information on the three firms A, B, and C:

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Capital

Firm A

Firm B

Firm C

Debt

$1,000

$2,000

$3,000

Equity

$3,000

$2,000

$1,000

a. Calculate the debt ratio for each firm.

b. Calculate the debt-to-assets ratio for each firm.

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