What is the debt equity ratio of the company?
Debt Equity = Debt/Shareholder funds Debt = Long term borrowing = 12,00,000 Shareholder funds = Share capital + reserves and surplus + money received against share warrants) = 10,00,000 + 7,00,000 + 2,00,000 = 19,00,000 Debt equity (D/E) ratio = 12,00,000/19,00,000 = 0.63 times
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