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Company Dreamworks Pixar Expenses $ 48,000 106,000 Total Assets $ 105,000 163,000 Net Income $ 45,000 66,000 Total Liabilities $ 87,000 149,600 Universal 25,000

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Company Dreamworks Pixar Expenses $ 48,000 106,000 Total Assets $ 105,000 163,000 Net Income $ 45,000 66,000 Total Liabilities $ 87,000 149,600 Universal 25,000 94,000 7,600 40,800 a. Compute the debt ratio for each of the three companies. (Round your answers to 2 decimal places.) Company Debt Ratio Dreamworks Pixar Universal b. Which company has the most financial leverage? Largest financial leverage

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