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      Question

      Calculate the Debt/Equity Ratio of the company from the

      above information. Refer to the following Date for Q2-Q3 Balance Sheet Amount (Rs.) Fixed Assets 3,00,000 Cash 60,000 Inventory 40,000 Total Assets 4,00,000     Share Capital 2,00,000 Long term Debt 1,64,000 Trade Payables 36,000 Total Equity and Liabilities 4,00,000
      A 0.50 Correct Answer Incorrect Answer
      B 0.82 Correct Answer Incorrect Answer
      C 1.00 Correct Answer Incorrect Answer
      D 1.22 Correct Answer Incorrect Answer
      E 2.00 Correct Answer Incorrect Answer

      Solution

      Debt/Equity = Debt/Equity                         = 1,64,000/200,000                         = 0.82 times

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