what is debt equity ratio
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Answer Posted / ravindra
It is a measure of acompanys leverage calculated by
dividing its liabilities by share holders equity. the
formulae for caluculating debt equity ratio is
debt/equity debt means debentures equity means equity share
holders. the ideal ratio of debt equity ratio is 0.5 : 1
this indicates for every 50 paise of liability there must
be 1 rupee of asset
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