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Exercise 2-29 (Algo) Calculating and interpreting the debt ratio LO A2 Company DreamWorks Pixar Total Assets $ 100,000 162,000 92,000 Total Liabilities $ 86,000 149,400
Exercise 2-29 (Algo) Calculating and interpreting the debt ratio LO A2 Company DreamWorks Pixar Total Assets $ 100,000 162,000 92,000 Total Liabilities $ 86,000 149,400 Universal 38,280 Company DreamWorks Expenses $ 46,000 103,000 24,000 a. Compute the debt ratio for each of the three companies. (Round your answers to 2 decimal places.) Pixar Universal Debt Ratio Net Income $ 43,000 63,000 7,400 0.08 b. Which company has the most risk from financial leverage? Which company has the most risk from financial leverage? Pixar
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