if total assets to debt ratio is 3:1.shareholders fund is 2times of debt and debt are 500000/- calculate proprietory ratio
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Answer:
debt =500000
shareholder fund = 500000 ×2 = 1000000
total assets to debt ratio=
total assets/debt
=3/ 1= total assets/500000
total assets =1500000
proprietary ratio =
shareholders fund/total assets
= 1000000/1500000
= 0.667:1
=
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