Question

XYZ Ltd. is a medium-sized manufacturing company. Its

Q: Answer-XYZ Ltd. is a medium-sized manufacturing company. Its summarized Balance Sheet and additional financ...

Equity Share Capital Reserves 15,00,000 5,00,000 20,00,000 DER 6,00,000 20,00,000 0.3

summarized Balance Sheet and additional financial information for the year ended 31st March 2024 are given below. Use this data to answer the following independent questions. Balance Sheet of XYZ Ltd. (as on 31st March 2024) Additional Information (from P&L A/c) • EBIT = ₹12,00,000 • Provision for tax = 40% From the Balance Sheet, compute the Debt-Equity Ratio.

A 0.3 : 1

B 0.5 : 1

C 0.4 : 1

D 0.6 : 1

E 1 : 1

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XYZ Ltd. is a medium-sized manufacturing company. Its

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