From the following information:
Rs
Total Assets 15,00,000
Current Liabilities 6,00,000
Total Debts 12,00,000
The Debt-equity ratio will be:
None of the above
Incorrect AnswerExplanation:
Debt Equity Ratio= Long Term Debt/Equity Fund
Equity Fund = Total Assets (-) Total Debt
= 15,00,000- 12,00,000= 3,00,000/-
Long Term Debts = Total Debts − Current Liabilities
Debt Equity Ratio= 6,00,000/3,00,000= 2 times
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