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A firm has total assets of $1,000,000. It has $300,000 in long-term liabilities. The stockholder's equity is $300,000. What is the total debt ratio? Apparently,

A firm has total assets of $1,000,000. It has $300,000 in long-term liabilities. The stockholder's equity is $300,000. What is the total debt ratio?

Apparently, the answer is 70% but I am failing to understand why.

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