Question

calculate equity debt ratio capital reserve 70000 share capital 30000 and 12% of debenture of 60000​

Answer 1

Answer:

Debt To Equity Ratio will be 0.6:1

Explanation:

Equity = Reserve and Surplus + Share Capital = Capital Reserve + Share Capital = 70,000+30,000= 1,00,000

Debt= Long Term Debt (Non Current Liabilities) = 60,000

Debt to Equity Ratio = Debt/Equity = 60,000/1,00,000= 3:5= 0.6:1

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