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Answer: 0.5
**Explanation:** The debt-to-equity ratio measures the proportion of debt financing relative to equity financing. A ratio of 1.0 indicates equal amounts of debt and equity. The debt-to-capital ratio, which includes both debt and equity in the denominator, is calculated as follows: - **Debt-to-equity ratio** = Total Debt / Total Shareholder's Equity = 1.0 - **Debt-to-capital ratio** = Total Debt / (Total Debt + Total Shareholder's Equity) Given that Total Debt = Total Shareholder's Equity, the debt-to-capital ratio simplifies to: Total Debt / (2 * Total Debt) = 0.5. **Option B** is incorrect because it assumes Capital equals Equity, leading to a misinterpretation of the ratio. **Option C** is incorrect as it conflates the debt-to-capital ratio with financial leverage, which is a distinct measure of solvency.
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