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What will be the impact of ‘ Issue of shares against the purchase of fixed assets ‘ on a debt Equity ratio of 1:1 ?

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What will be the impact of ‘ Issue of shares against the purchase of fixed assets ‘ on a debt Equity ratio of 1:1 ?

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Debt-equity ratio will decrease because the Long-term loans remain unchanged where as the Shareholders funds are increased by the amount f share capital issued. 

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