Answer Posted / chandrasekhar hota
2 types
i> Debt-Equity Ratio = Total Debt / Total Equity
or D/E Ratio = Outsider's funds / Shareholder's funds
O's funds=>debentures+long ter loans+current liabilities
S's funds=>equity share capital+preference share
capital+share premium+reserve surplus
ii> Interest Coverge Ratio = EBIT / Interest Charges
EBIT=>Earnings Before Interest and Taxes
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