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stark company's most recent balance sheet reported total assets of $1,700,000, total liabilities of $900,000, and total equity of $800,000. its debt-to-equity ratio is:

Respuesta :

The last balance sheet for the small company showed total assets of $1.7 million, total liabilities of $900,000, and total equity of $800,000. It has a 1.125 debt-to-equity ratio.

What does debt to equity ratio mean?

By dividing a company's total liabilities by the value of its shareholders, the debt-to-equity (D/E) ratio, which gauges its financial leverage, is calculated.

The D/E ratio is a crucial indicator in corporate finance. It measures the proportion of debt that a company is using to finance its operations as opposed to cash on hand. Debt-to-equity ratios fall under a specific category of gearing.

Calculation:

Debt to equity ratio equals debt to equity

Liabilities plus debt total $900,000

Equities totaling $800,000

debt to equity is equal to 900k/800k.

debt to equity is 1.125.

Learn more about the debt-to-equity (D/E) ratio with the help of the given link:

brainly.com/question/17233079

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