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Robert Sampson owns a townhous has the following liabilities: ,000 and still has an unpaid mortgage of $157,000. In addition
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Answer #1

Debt = Debt ( not including mortgage)

Debt = $11330

Equity = Net worth ( not including home)

Equity = $46000

a. Debt to Equity Ratio = Debt / Equity = 11330/46000 = 0.25

b. No it has not reached the upper limit of debt obligation as Debt to Equity Ratio is below 1

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