Question

    Which of the following will be considered as debt while

    calculating the debt equity ratio of a company?
    A Equity Shares Correct Answer Incorrect Answer
    B Redeemable Preference Shares Correct Answer Incorrect Answer
    C Securities premium Correct Answer Incorrect Answer
    D Debenture Redemption reserve Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Redeemable Preference shares are preference shares that have to be repaid back after the maturity period. As such they are considered as debt obligation as it has to be repaid back.

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