Question
The Debt Equity ratio of a company is 1.6. Which of the
following events is likely to improve the debt equity ratio of the company?Solution
A Rights issue means that the company raises new equity capital from its existing shareholders. As such, the overall equity will increase leading to an improvement in the debt equity ratio of the company. Reduction in debtors will leave the internal and external funds unchanged as this will only affect the composition of current assets. Hence, the debt-equity ratio will remain unchanged. Sale of goods on cash basis neither affects Debt nor equity. Working capital debt is a short term debt and not included in the debt equity ratio as this ratio considers only long term debt. As such, a decline in working capital limit utilisation will not impact the debt equity ratio.
- In each sentence below four words have been printed in bold which are labeled (a), (b), (c) and (d ) One of these words may be misspelt or inappropriate in...
The more money the governments pored into it, the harder it was to walk away.
...Choose the correctly spelt word.
- In the sentence given below four words have been printed in bold which are labeled as (A), (B), (C) and (D) One of these words may be misspelt or inappropr...
In each group, one word is correctly spelt. Find the correct word.
Choose the word with the correct spelling.
1) adequaet
2) hallucination
3) demografy
4) comandment
In each of the following sentences given below, four words have been printed in bold. One of these words may be misspelt or inappropriate in the contex...
Select the Incorrectly spelt word.
Select the INCORRECTLY spelt word.
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