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10 April, 13:59

A company reports total assets of $910,000 and stockholders' equity of $530,000. Calculate the debt ratio.

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  1. 10 April, 14:13
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    Answer: 42%

    Explanation:

    Liabilities = assets-stockholders equity, the debt ratio formula is = (liabilities / assets)

    We solve, ($910,000-$530,000) = $380,000

    $380,000/$910,000 = 42%
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