What is the formula of Debt Equity Ratio? Also define its
importance in a firm.
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Answer Posted / libina kutty
DEBT EQUITY RATIO = DEBT / EQUITY
IT TELLS D TOTAL DEBT OF AN ENTITY TO ITS EQUITY . IT SHOULD
BE IN THE RATIO OF 2:1. WHICH MEANS FR EVRY 2 DEBT 1 EQUITY
SHOULD BE THEIR.
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