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      Question

      Determine the debt-equity ratio of XYZ Ltd Debt

      outstanding = 800,000 Equity capital = 1000,000 Share reserves = 100,000
      A 0.73 Correct Answer Incorrect Answer
      B 1.25 Correct Answer Incorrect Answer
      C 1.37 Correct Answer Incorrect Answer
      D 0.91 Correct Answer Incorrect Answer
      E 0.80 Correct Answer Incorrect Answer

      Solution

      Debt equity ratio = debt /equity = 800000/ (1000000+100000) = 800000/1100000= 0.72

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