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Entity H has total assets of $800,000 and total liabilities of $500,000. If Entity H repays a $125,000 long-term bank loan, what will its new

Entity H has total assets of $800,000 and total liabilities of $500,000. If Entity H repays a $125,000 long-term bank loan, what will its new debt/total assets ratio be (round up to one decimal if necessary? Hint: Think of the journal entry

a. 46.9%

b. 55.5%

c. 67%

d. 62.5%

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