If a company has a 70 percent debt to total assets ratio, approximately 70 cents of every dollar of assets is owed to the company creditors.

Name: If a company has a 70 percent debt to total assets ratio, approximately 70 cents of every dollar of assets is owed to the company creditors.
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Question

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A debt to total assets ratio of 70 percent means that for every dollar of assets, the company owes 70 cents to creditors, indicating that 70% of the company's assets are financed through debt.

If a Company Has a 70 Percent Debt to Total