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Company DDD has total assets of $1,800,000 and total equity of $1,000,000. Calculate its debt-to-equity ratio and discuss its interpretation in assessing financial leverage. Explain

Company DDD has total assets of $1,800,000 and total equity of $1,000,000. Calculate its debt-to-equity ratio and discuss its interpretation in assessing financial leverage. Explain the debt-to-equity ratio as a measure of a company's capital structure, indicating the proportion of financing provided by creditors relative to shareholders. Discuss the significance of the debt-to-equity ratio in evaluating financial risk, solvency, and its implications for capital allocation decisions and shareholder value.

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