Question

From the following, calculate

(a) Debt-Equity Ratio

(b) Total Assets to Debt Ratio

(c) Proprietary Ratio.

Answer 1

(a) Debt Equity Ratio = Debt/Equity

Equity / Share holders Funds = Equity Share Capital + Preference Share Capital + General Reserve +Accumulated Profit – Preliminary Expenses Written ***

= 75,000 + 25,000 + 50,000 + 30,000 – 5,000=1,75,000