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D/E ratio= Debt/Shareholders Fund D/E ratio = 100000/305000= 0.327 (0.33 approx.) Â 
Debt= 1,00,000 (Debentures) Shareholders Fund= Equity Share + Preference Share + General Reseve – Preliminary expenses 2,00,000 + 1,00,000 + 20,000 – 15,000 = 3,05,000
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