Question

X Ltd has a debt Equity Ratio 3 : 1 According to the Management, it should be maintained at 1;1. What are the two choices to do so?

Answer 1

Answer:

x limited has a debt equity ratio of 3 : 1. acording to management it should be maintained at 1 : 1. ... (iii) Combination of both i.e. reduce Debts and increase Equity by the equal proportion. Suppose a company has total debts of Rs 30,000 and equity of Rs 10,000 so clearly. debt- equity ratio is 3:1

Explanation:

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