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In: Finance

WFG has total equity of 50,000 and total assets of 90,000. what is the total debt...

WFG has total equity of 50,000 and total assets of 90,000. what is the total debt ratio?

Solutions

Expert Solution

Ans 0.4444

TOTAL DEBT = TOTAL ASSETS - TOTAL EQUITY
90000 - 50000
40000
TOTAL DEBT RATIO = TOTAL DEBT / TOTAL ASSETS
40000 / 90000
0.4444

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