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please solve a. What does leverage mean? b. What is capital structure? c. Based on their balance sheets dated 12/31/18, the capital structures of Spotify,

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a. What does leverage mean? b. What is capital structure? c. Based on their balance sheets dated 12/31/18, the capital structures of Spotify, Elanco, ADT Inc. and Dropbox, Inc. are summarized below. 1. Using this information, name the financial ratio that you would use to assess risk. 2. Which of the companies would represent the least risky investment? Explain your answer. Company Name Debt Equity Spotify 26% 74% Elanco Animal 40% 60% Health Inc. ADT Inc. 74% 26% Dropbox, Inc. 52% 48%

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