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12 August, 07:28

Gi gi's bakery has total assets of $425 million. its total liabilities are $110 million. its equity is $315 million. calculate the debt ratio.

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  1. 12 August, 07:29
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    The answer:

    debt ratio formula can be found with

    debt ratio = total liabilities / total assets,

    debt ratio = $110 million / $425million = 0.25 = 1/4
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