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Which statement accurately contrasts the debt to equity ratio with the debt ratio?
What is a potential risk of a highly leveraged company?
Why are interest payments more burdensome for a company with a high debt to equity ratio compared to dividend payments?
A company has total liabilities of \$500,000 and total equity of \$250,000. What is the debt to equity ratio, and what does it indicate about the company's leverage?
If a company has \$750,000 in liabilities and \$500,000 in equity, what is the debt to equity ratio and what does it suggest about the company's leverage?
How does a high debt to equity ratio affect a company's financial stability?
A retail company has \$2,000,000 in liabilities and \$1,000,000 in equity. Calculate the debt to equity ratio and interpret its meaning.
Why does a debt to equity ratio greater than 1.0 suggest a company relies more on debt than equity?
What does a debt to equity ratio greater than 1.0 imply about a company's financing strategy?
What is a potential risk of a highly leveraged company?