1.

What is Debt-Equity Ratio?

Answer»

This Ratio measures the Ability of the Firm to meet its Long Term Liabilties. It Indicates the Funds Provided by Long Term Lenders in Comparison to the Funds Provided by the Owners, i.e. Shareholders

Debt Equity Ratio = Deb/Equity = Long Term Debts/Shareholder's Funds



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