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Calculate the debt-to-equity ratio

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Reference no: EM132874694

Problem - Busch Company's balance sheet shows total liabilities of $510,900, total equity of $126,000, and total assets of $636,900.

Required - Note: Round answers to two decimal places.

1. Calculate the debt ratio.

2. Calculate the debt-to-equity ratio.

3. Based on the ratios calculated in Requirements 1 and 2, comment on the riskiness of Busch's financing decisions.

Reference no: EM132874694

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