1. In early-2019, Delta Airlines had total assets worth $24.8 billion, debt of $12.8 billion, and cash of $5.5 billion. Delta also had annual revenues of $38.9 billion. However, United Airline had total assets of $28.8 billion, debt of $2.7 billion, cash of $2.9 billion, and annual revenues of $18.6 billion. (5 marks)

1. Compare the leverage ratio for Delta Airlines and United Airlines.
2. The company with the higher leverage ratio will be less profitable and therefore this will have a negative impact on that companys share price. Do you agree with this statement? Give reasons.