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      Question

      Calculate the Debt Equity ratio of the

      company? Refer to the following information to answer the next 4 questions (Q11 to Q14)
      A 0.31 Correct Answer Incorrect Answer
      B 0.33 Correct Answer Incorrect Answer
      C 0.49 Correct Answer Incorrect Answer
      D 0.45 Correct Answer Incorrect Answer
      E 0.91 Correct Answer Incorrect Answer

      Solution

      D/E ratio= Debt/Shareholders Fund D/E ratio = 100000/305000= 0.327 (0.33 approx.) Β  Debt= 1,00,000 (Debentures) Shareholders Fund= Equity Share + Preference Share + General Reseve – Preliminary expenses 2,00,000 + 1,00,000 + 20,000 – 15,000 = 3,05,000

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