Hack Wellington Company needs equipment that will cost the company $600. Hack Wellington Company is considering to either purchase the equipment by borrowing $600 from a local bank or leasing the equipment. Assume that the lease will be structured as an operating lease. Some data from Hack Wellington Company's current balance sheet prior to the lease or purchase of the equipment are: Current assets Net fixed assets Total assets Balance Sheet Data (Dollars) $1,800 Debt 1,200 Equity $3,000 Total claims $1,500 1,500 $3,000 1. The company's current debt ratio is 40% 2. If the company purchases the equipment by taking a loan, the total debt in the balance sheet will increase , and the debt ratio will change to 58% 3. If the company leases the equipment, the company's debt ratio will remain unchanged because the lease is not capitalized. 4. In this case, the company's financial risk will be less under a lease agreement as compared to the financial risk in purchasing the equipment by taking a loan. 5. However, if the lease is capitalized, the financial risk under the lease agreement will be the same as compared to the risk in buying the equipment