📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    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

    Practice Next
    More Basics of Derivatives Questions
    ask-question