The Debt Equity ratio is 3. What will be the impact on the following t

1.	The Debt Equity ratio is 3. What will be the impact on the following transactions, and find out the increase, decrease or no change in the ratio. (i) Buy back of equity shares. (ii) Purchase of a building on a deferred payment basis. (iii) Issued shares in consideration of purchase of a machinery. (iv) Debentures matured but not paid.
Answer» The Debt Equity ratio is 3. What will be the impact on the following transactions, and find out the increase, decrease or no change in the ratio. (i) Buy back of equity shares. (ii) Purchase of a building on a deferred payment basis. (iii) Issued shares in consideration of purchase of a machinery. (iv) Debentures matured but not paid.

The Debt Equity ratio is 3. What will be the impact on the following transactions, and find out the increase, decrease or no change in the ratio. (i) Buy back of equity shares. (ii) Purchase of a building on a deferred payment basis. (iii) Issued shares in consideration of purchase of a machinery. (iv) Debentures matured but not paid.

Answer»

The Debt Equity ratio is 3. What will be the impact on the following transactions, and find out the increase, decrease or no change in the ratio.

(i) Buy back of equity shares.

(ii) Purchase of a building on a deferred payment basis.

(iii) Issued shares in consideration of purchase of a machinery.

(iv) Debentures matured but not paid.