Question
A project proposes Debt of ₹140 crore and Equity
(including reserves) of ₹60 crore. The industry norm allows maximum Debt–Equity of 2:1. What is the credit implication?Solution
Debt–Equity = 140 / 60 = 2.33 : 1 Above norm of 2:1 → additional equity required
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A project proposes Debt of ₹140 crore and Equity (including reserves) of ₹60 crore. The industry norm allows maximum Debt–Equity of 2:1. What is t...
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Match the following:
