43 :- Capital Employed Rs 8,00,000; Shareholder’s Funds Rs 2,00,000. Calculate Debt to Equity Ratio.
Solution :-
Debt = Capital Employed – Shareholder’s Fund
= 8,00,000 – 2,00,000
= Rs 6,00,000
Shareholder’s Fund (Equity) = Rs 2,00,000
Debt to Equity Ratio = Debt/Equity
= 6,00,000/2,00,000
= 3 : 1