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What Debt Equity Ratio ?

Answers were Sorted based on User's Feedback



What Debt Equity Ratio ?..

Answer / manoj s

It indicates the firms ability to pay its long term
debts.It measures the relationship between long term funds
and Shareholders Funds.. It is Calculated by the formula:


Debt Equity Ratio= Long term Funds/Shareholders Funds


Long terms Funds=debt+long terms loans

Shareholders Funds=Equity capital+Preference
Capital+Reserves and Surplus..

Is This Answer Correct ?    5 Yes 0 No

What Debt Equity Ratio ?..

Answer / nitin sharma

as represent by name dept eq. ratio means ratio of dept on
equity shares that will be alwase .5:1 is ideal

Is This Answer Correct ?    0 Yes 0 No

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