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A company's balance sheet shows total assets of $500,000 and total liabilities of $200,000. If the owner's equity is $300,000, calculate the debt-to-equity ratio. Discuss

A company's balance sheet shows total assets of $500,000 and total liabilities of $200,000. If the owner's equity is $300,000, calculate the debt-to-equity ratio. Discuss how this ratio reflects the company's capital structure and its implications for financial risk and leverage.

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