A company has total liabilities of $1,200,000 and total equity of $800,000. Calculate the debt-to-equity ratio. Discuss the implications of this ratio for the company’s financial leverage and risk. Analyze how the ratio compares to industry benchmarks and the company’s historical performance. Explain the impact of changes in debt levels and equity on the debt-to-equity ratio. Consider the strategic importance of managing financial leverage, including the benefits of using debt to finance growth and the risks associated with high leverage. Discuss the role of the debt-to-equity ratio in financial planning, risk management, and investment decision-making. Explain how the ratio influences the company’s cost of capital and its ability to attract investors and secure financing.