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XYZ Corporation is considering expanding its operations by acquiring a competitor. The competitor has total assets of $2,000,000 and total liabilities of $800,000. If the

XYZ Corporation is considering expanding its operations by acquiring a competitor. The competitor has total assets of $2,000,000 and total liabilities of $800,000. If the owner's equity is $1,200,000, calculate the debt-to-equity ratio for the competitor and discuss its implications for the acquisition decision. Evaluate the financial risks and benefits associated with acquiring a competitor with different debt levels.

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