Debt Equity Ratio = Long term Debt/ Equity
Long Term Debt = Mortgage loan + Debenture
here only debenture given. so
long term debt = 150000
Equity = issued capital + reserves + accumulated profit
= 200000+90000+60000 = 350000
NOW
Debt equity ratio = 150000/350000 = 3/7 or 3:7
now clear??????
On Wed, Feb 16, 2011 at 5:24 PM, mc100400767 Muhammad Shahzad <mc100400767@vu.edu.pk> wrote:
Ratio kasay calculate ho gi:
Particulars
Rs.
Debentures
1, 50, 000
Equity Capital
2, 00,000
General Reserve
90, 000
Accumulated profit
60,000
What is debt equity ratio
?
► 15: 20 (or 3:4)
► 15:24 (or 5: 8)
► 15:29
► 15:35 (or 3: 7) --
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