Question

Equity Share Capital ₹20,00,000; Reserve 5,00,000; Debentures ₹10,00,000; Current Liabilities ₹8,00,000. Debt-equity ratio will be​

Answer 1

Answer:

debt equity ratio= 1000000/(20,00,000+5,00,000)

=10,00,000/25,00,000

=0.40

Answer 2

Answer:

4:1

Explanation:

Given :

Equity Share Capital :-  ₹20,00,000

Reserve:-  5,00,000;

Debentures:-  ₹10,00,000

Current Liabilities:- ₹8,00,000.

To find:

Debt-equity ratio ?

Solution:

Let,

$Debt equity ratio=\frac{Debentures}{totel}$

 $=\frac{10,00,000}{20,00,000+ 5,00,000+ 8,00,00}$

= 4:1