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A company's balance sheet shows total assets of $600,000 and total liabilities of $200,000. If the owner's equity is $400,000, calculate the debt-to-assets ratio and
· A company's balance sheet shows total assets of $600,000 and total liabilities of $200,000. If the owner's equity is $400,000, calculate the debt-to-assets ratio and discuss its implications for the company's financial risk management and capital structure decisions. Explore how variations in the debt-to-assets ratio reflect differences in leverage levels and their impact on creditworthiness and investor confidence.
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