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Calculate the debt ratio for Company YYY, given its total liabilities of $400,000 and total assets of $1,000,000. Explain the debt ratio as a measure
Calculate the debt ratio for Company YYY, given its total liabilities of $400,000 and total assets of $1,000,000. Explain the debt ratio as a measure of a company's financial leverage and risk, indicating the proportion of assets financed by debt relative to total assets. Discuss the implications of a high or low debt ratio for a company's solvency and ability to meet its long-term obligations.
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