Question

Give two examples that will increase debt equity ratio.​

Answer 1

Answer:

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Explanation:

Therefore, the debt equity ratio, we will calculate as follows: Debt Equity Ratio = (10000+15000+5000) / (10000+25000-500) = 30000/ 34500 = 0.87.

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Example.

Debentures. 10000

Short-term Liabilities. 5000

Shareholder' Equity 10000

Reserves and surplus (R&S). 25000