Solution-Compute the debt to assets ratio

Compute the debt to assets ratio

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Reference no: EM13914652

The following information was drawn from the balance sheets of two companies:

584_264-B-A-D-E-F (107).png

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.

Reference no: EM13914652

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Compute the debt to assets ratio

Reference no: EM13914652

Reference no: EM13914652

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