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Delta Motors has the following capital structure as of December 31, 20X9: Total Debt: $200 million Total Equity: $300 million Preferred Stock: $50 million Common

Delta Motors has the following capital structure as of December 31, 20X9:

  • Total Debt: $200 million
  • Total Equity: $300 million
  • Preferred Stock: $50 million
  • Common Stock: $200 million
  • Retained Earnings: $100 million

Calculate Delta Motors' debt-to-equity ratio and discuss the implications of its capital structure on financial risk and leverage.

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