Answer Posted / mahendar

The ratio measure the relative claims of the creditors, and
the owners against the firm assets. The relationship
between the long-term funds and the shareholders funds.
high debt-equity ratio implies the creditors margin of
saftey,firm point of view low debt-equity ratio greter the
margin of saftey.
high debt using the firm conservatism method more then
equity.
D/e ratio=long term funds/shareholders funds

please send me some previous sbi clerical interview questions to my email id....

2145

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A company produces and sells 12500 units of Commodity X at Rs 50 each. The variable cost of the production is 20 % of selling price. Fixed cost being Rs 100000 per annum. Calculate the PV ratio and BEP if.  The selling price is reduced by 5 %.  Fixed cost is increased by 2 lacs

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Expand ----------GIDB

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