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XYZ Corporation is contemplating acquiring a competitor to expand its market share. The competitor has total assets of $3,000,000 and total liabilities of $1,200,000. If

XYZ Corporation is contemplating acquiring a competitor to expand its market share. The competitor has total assets of $3,000,000 and total liabilities of $1,200,000. If the owner's equity is $1,800,000, 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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