?What is the debt/net worth ratio and the debt to total assets ratio for a firm with total debt of $600,000 and equity of $400,000?

What will be an ideal response?


Debt/Net worth: $600,000/$400,000 = 1.5?Debt ratio (Debt/Total assets):$600,000/($600,000 + $400,000) = 0.6 = 60%

Business

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