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The following information was drawn from the balance sheets of two companies: Company East West Assets = Liabilities 206,000 602,000 91,000 168,000 + Equity
The following information was drawn from the balance sheets of two companies: Company East West Assets = Liabilities 206,000 602,000 91,000 168,000 + Equity 115,000 434,000 Required a. Compute the debt-to-assets ratio to measure the level of financial risk of both companies. b. Compare the two ratios computed in requirement a to identify which company has the higher level of financial risk. Complete this question by entering your answers in the tabs below. Required A Required B Compute the debt-to-assets ratio to measure the level of financial risk of both companies. (Round your answers to decimal place.) Debt to Assets Company Ratio East % West %
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