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If Company XYZ uses $1,000,000 in debt to purchase $1,000,000 in assets, what impact would this have on the companys debt to total assets ratio?

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If Company XYZ uses $1,000,000 in debt to purchase $1,000,000 in assets, what impact would this have on the companys debt to total assets ratio?

Question 5 options:

a)

It would increase

b)

It would decrease

c)

It would stay the same

d)

We dont have enough information to decide

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