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    Question

    A firm's debt = ₹8,00,000 and equity = ₹12,00,000.

    Debt-equity ratio is:
    A 0.67 Correct Answer Incorrect Answer
    B 0.75 Correct Answer Incorrect Answer
    C 1.5 Correct Answer Incorrect Answer
    D 0.8 Correct Answer Incorrect Answer

    Solution

    Debt-Equity Ratio = Total Debt / Equity = 8,00,000 / 12,00,000 = 0.666... ≈ 0.67.

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