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2. An analyst evaluates the solvency of three companies and gathers the following information: Company X 6,340 Company Y Company Z 3,460 7,030 Total assets

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2. An analyst evaluates the solvency of three companies and gathers the following information: Company X 6,340 Company Y Company Z 3,460 7,030 Total assets Common stock 750 140 470 Additional paid-in capital 2,800 1,890 3,900 Retained earnings 900 310 110 Treasury stock -50 -100 -110 Compute the companies' financial leverage ratios. Which company has the greatest ability to meet long-term obligations? (25) 2. An analyst evaluates the solvency of three companies and gathers the following information: Company X 6,340 Total assets Company Y Company Z .3,460 7,030 Common stock 750 140 470 Additional paid-in capital Retained earnings 2.800 1,890 3,900 I 900 310 110 Treasury stock -50 -100 -110 Compute the companies' financial leverage ratios. Which company has the greatest ability to meet long-term obligations? (25)

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