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

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Accounting

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Selected financial data for these two close competitors in the home building industry are provided below: $ in millions) Company A Company B Total assets $40,920 $33,810 Total liabilities 21,430 13,920 Total stockholders equity 19, 490 19,090 Sales 566,170 $47,220 Interest expense 740 360 Tax expense 1,450 1,060 Net income 2,688 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 A O Company B 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 times Company A Company 8 times 2-b. Which company is better able to meet interest payments as they become due? Company B Company A

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