Capital Employed Rs.8,00,000; Shareholders’ Funds Rs. 2,00,000. Calculate Debt to Equity Ratio.
SOLUTION Shareholders’ Funds = 2,00,000Capital Employed = 8,00,000Long- Term Debts = Capital Employed − Shareholders’ Funds= 8,00,000 − 2,00,000= 6,00,000 Debt equity ratio = Long-term Debt / equity= 6,00,000 / 2,00,000=…