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A company has total assets of $1,500,000 and total liabilities of $600,000. If the owner's equity is $900,000, calculate the debt ratio and discuss its
A company has total assets of $1,500,000 and total liabilities of $600,000. If the owner's equity is $900,000, calculate the debt ratio and discuss its implications for the company's financial leverage and risk management. Explore how variations in the debt ratio can affect a company's ability to access capital markets, manage debt obligations, and maintain financial stability.
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