Question

proprietor ratio can be expressed in​

Answer 1

Answer:

The ideal value of the proprietary ratio of the company depends on the risk appetite of the investors. If the investors agree to take a large amount of risk, then a lower proprietary ratio is preferred. This is because, more debt means more leverage means profits and losses both will be magnified.

Answer 2

Answer:

The proprietary ratio (also known as net worth ratio or equity ratio) is used to evaluate the soundness of the capital structure of a company. It is computed by dividing the stockholders' equity by total assets.

Explanation: