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What Debt Equity Ratio ?
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Answer / manoj s
It indicates the firms ability to pay its long term
debts.It measures the relationship between long term funds
and Shareholders Funds.. It is Calculated by the formula:
Debt Equity Ratio= Long term Funds/Shareholders Funds
Long terms Funds=debt+long terms loans
Shareholders Funds=Equity capital+Preference
Capital+Reserves and Surplus..
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Answer / nitin sharma
as represent by name dept eq. ratio means ratio of dept on
equity shares that will be alwase .5:1 is ideal
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