basedwalton2534 basedwalton2534

08-02-2018
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The fram family has liabilities of $173,000 and a net worth of $350,000. what is their debt ratio?

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prosborough198p2ub41 prosborough198p2ub41

08-02-2018

Hello!

Debt ratio is liabilities/net worth. So 173/350 debt ratio or 0.494 percent debt ratio. Meaning that almost half their net worth is tied up in debt.

Hope this helps! Thank you!

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