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Leverage. A firm has a long-term debt-equity ratio of 0.4. Shareholders` equity is $1 million. Current assets are $200,000 and the current ratio is 2.0.

Leverage. A firm has a long-term debt-equity ratio of 0.4. Shareholders` equity is $1 million. Current assets are $200,000 and the current ratio is 2.0. The only current liabilities are notes payable. What is the total debt ratio?

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