Question: Debt to Equity Ratio Calculation and Financial Risk Evaluation : A company has total liabilities of $2,000,000 and shareholders' equity of $1,000,000. Calculate the company's
Debt to Equity Ratio Calculation and Financial Risk Evaluation: A company has total liabilities of $2,000,000 and shareholders' equity of $1,000,000. Calculate the company's debt to equity ratio, and assess its financial risk and leverage. Discuss the implications of high and low debt to equity ratios for creditors, investors, and the company's long-term financial stability and growth prospects.
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