Home Demo reports the following: Total liabilities = $38,633 million and Total assets = $42,966 million. (a) Compute Home Demo’s debt ratio. (b) Assuming Lows Hardware (a competitor) has a debt ratio of 60%, which company has higher risk from financial leverage?
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Home Demo reports the following: Total liabilities = $38,633 million and Total assets = $42,966 million.
(a) Compute Home Demo’s debt ratio.
(b) Assuming Lows Hardware (a competitor) has a debt ratio of 60%, which company has higher risk from financial leverage?
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