Question
Company DreamWorks Pixar Universal Expenses $ 40,000 94,000 21,000 Total Assets $ 85,000 Net Income $ 37,000 159,000 54,000 86,000 6,800 a. Compute the
Company DreamWorks Pixar Universal Expenses $ 40,000 94,000 21,000 Total Assets $ 85,000 Net Income $ 37,000 159,000 54,000 86,000 6,800 a. Compute the debt ratio for each of the three companies. Note: Round your answers to 2 decimal places. Company Debt Ratio DreamWorks Pixar Universal b. Which company has the most risk from financial leverage? Largest financial leverage Total Liabilities $ 73,100 148,800 31,200
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