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Finance / July 19, 2018 / Hanna Hunt

Debt to Total Asset Ratio is a ratio to determine the extent of leverage in a company. This ratio makes it easy to compare the levels of leverage in different companies. Debt to Total Asset Ratio is a very important ratio in the ratio analysis. The article clarifies how we can analyze this ratio and interpret it to use it for making important financial decisions.

The cost of debt is the monetary price of servicing the interest and principal payments of obligations used to raise capital for a company. In other words, it’s the price companies pay to acquire and keep debt.

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