Accountancy, asked by nidharshana, 1 year ago

what is debt equity ratio

Answers

Answered by cutiealeeza132
4
Hyyy dear here is your answer

Debt Equity ratio: It is the ratio between long term debt and shareholders' funds. Long term debts include debenture loan from Financial Institutions, etc. Shareholders funds include equity and preference share capital + reserve and surplus - fictitious assets.
Formula :

Debt Equity Ratio=Long term Debts ÷ Shareholders' Fund.

Hope it will help you.....
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