Question

the debt equity ratio of h Limited is 0.5 ratio 1 if we issue the bonus share the debt equity ratio increase or decrease or not change in a debt equity ratio​

Answer 1

As the debt to equity ratio continues to drop below 1, so if we do a number line here and this is one, if it's on this side, if the debt to equity ratio is lower than 1, then that means its assets are more funded by equity. If it's greater than one, its assets are more funded by debt.