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Company Dreamworks Pixar Universal Expenses $ 25,000 115,000 28,000 Total Assets $125,000 166,000 100,000 Net Income $51,000
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Answer :

a.Calculation of debt ratio of :

Debt ratio = Total liabilities ÷ Total assets

1) DreamWorks = $1,20,000 ÷ $1,25,000 = 0.96

2) pixar = $1,50,200 ÷ $1,66,000 = 0.91

3) Universal = $48,840 ÷ $1,00,000 = 0.49

b. DreamWorks company has largest financial leverage of 0.96

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