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    Question

    As at 31 March 2025, Ace Ltd. has long-term borrowings

    of ₹4,00,00,000, working capital loans of ₹1,00,00,000, and shareholders’ funds amounting to ₹6,00,00,000. The finance team wants to compute the Debt-Equity Ratio for the balance sheet. What’s the appropriate debt-equity ratio using long-term borrowings only?
    A 0.67 : 1 Correct Answer Incorrect Answer
    B 1.00 : 1 Correct Answer Incorrect Answer
    C 0.50 : 1 Correct Answer Incorrect Answer
    D 0.75 : 1 Correct Answer Incorrect Answer
    E 1.25 : 1 Correct Answer Incorrect Answer

    Solution

    • Use long-term borrowings ₹4Cr ÷ equity ₹6Cr = 0.67 : 1.

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