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If you are the newly hired Finance leader of a company with a debt ratio of 1.1 and one of your initial tasks is to

  • If you are the newly hired Finance leader of a company with a debt ratio of 1.1 and one of your initial tasks is to reduce this ratio under 1 would it be more advantageous to reduce the numerator (debt liability) or increase the denominator (total assets). Are either of these levers more important than the other when reducing this ratio?

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