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Thank you Aswath! I have another question based on the previous. I am doing this analysis on Starwood Hotel & Resorts, does the Debt/ (Debt + Equity) of 58% seem to high. I think it's reasonable because its hotel..what do you think?
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You have to compare it to the average of the sector in order to know if it is to high or to low.
You can also try the optimal debt ratio approach to judge whether it is high or not!
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