39 :- From the following information, calculate Debt to Equity Ratio:
Solution :-
Shareholder’s Funds = Equity Shares + Preference Shares + General Reserve + Surplus
= 2,00,000 + 1,00,000 + 90,000 + 40,000
= Rs 4,30,000
Debt = 10% Debentures
= Rs 1,50,000
Debt to Equity Ratio = Debt/Equity
= 1,50,000/4,30,000
= 0.35 : 1