A) 0.5 : 1
B) 0.44 : 1
C) 3.5 : 1
D) 2.28 : 1
Correct Answer: B
Solution :
| [b] 0.44 : 1 |
| Hint: Debt Equity Ratio = \[\frac{Debt}{Equity}\] |
| \[\frac{Long-term Borrowings}{Share Capital + Reserves \And Surplus}\] |
| \[\frac{35,000}{70,000+10,000}\]=\[\frac{35,000}{80,000}\]=0.44:1 |
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