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Calculate the debt ratio

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Reference no: EM133180550

Question - Ernst Company's balance sheet shows total liabilities of $32,500,000, total stockholders' equity of $8,125,000, and total assets of $40,625,000.

Required -

1. Calculate the debt ratio. Round the debt ratio to the nearest percent.

2. Calculate the debt-to-equity ratio.

Reference no: EM133180550

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