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From the following, calculate 

(a) Debt-Equity Ratio 

(b) Total Assets to Debt Ratio 

(c) Proprietary Ratio.

1 Answer

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Best answer

(a) Debt Equity Ratio = Debt/Equity

Equity / Share holders Funds = Equity Share Capital + Preference Share Capital + General Reserve +Accumulated Profit – Preliminary Expenses Written off 

= 75,000 + 25,000 + 50,000 + 30,000 – 5,000=1,75,000

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