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From the following information calculate debt equity ratio. Balance sheet (Extract) as on 31st March, 2019: |
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Answer» Debt equity ratio - (Long term debt)/(Shareholders funds) Debenture = 6,00,000 Shareholders’ funds = Equity share capital + Reserves and surplus = 6,00,000 + 2,00,000 = 8,00,000 Debt Equity ratio = 6,00,000/8,00,000 = 0.75 : 1 |
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