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Selected financial data for Bahama Bay and Caribbean Key are as follows: ($...

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Accounting

Selected financial data for Bahama Bay and Caribbean Key are as follows:
($ in millions) Bahama Bay Caribbean Key
2026202520262025
Total assets $ 8,861 $ 9,560 $ 7,640 $ 7,507
Interest-bearing debt 3,8954,1051,215980
Other liabilities 1,8262,5011,6041,709
Total stockholders equity 3,1372,9544,8214,818
Sales revenue $ 6,321 $ 3,949
Interest expense 17070
Tax expense 1488
Net income 56288
Required:
1-a. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year.
1-b. Which company has the higher ratio?
2-a. Calculate the times interest earned ratio for Bahama Bay and Caribbean Key for the most recent year.
2-b. Which company is better able to meet interest payments as they become due?

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