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    • Question

      Given: Total Assets ₹250 lakh; Equity ₹100 lakh;

      Long-term Debt ₹80 lakh; Current Liabilities ₹30 lakh; Current Assets ₹70 lakh. Calculate Debt-Equity Ratio and Current Ratio.
      A 0.7 & 1.33 Correct Answer Incorrect Answer
      B 0.8 & 2.33 Correct Answer Incorrect Answer
      C 1.0 & 2.0 Correct Answer Incorrect Answer
      D 1.2 & 2.5 Correct Answer Incorrect Answer
      E 1.5 & 3.0 Correct Answer Incorrect Answer

      Solution

      D/E = 80/100 = 0.8; Current Ratio = 70/30 = 2.33

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