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What is the Formula of debt equity ratio?
Also Define its importance in accountancy.
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Answer Posted / srikara.h.p
Debt equity ratio is a long term ratio, it shows the
proportion of debt over the equity. the formula for debt
equity ratio is
DER= debt/equity
here debt is longterm liabilities and equity is none other
than the share holders fund
| Is This Answer Correct ? | 14 Yes | 3 No |
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