(i) The debt-equity ratio of the firm |
(ii) The percentage of debt in the total capital of the firm. |
Answer:
Total Capital of the Firm =\[Rs.75,00,000\] Debt =\[Rs.30,00,000\] Equity =\[\text{Rs}.45,00,000\text{ }(75,00,000-30,00,000)\](i) Debt-equity Ratio \[=\frac{Debt}{Equity}\] \[=\frac{30,00,000}{45,00,000}=2:3\] (ii) Percentage of Debt in the Total Capital \[=\frac{30,00,000}{75,00,000}\times 100=40%\]
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