Practice - Debt-Equity Ratio
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Practice Questions
Test your understanding with targeted questions
What is the formula for the Debt-Equity Ratio?
💡 Hint: What two financial components does this ratio compare?
What is considered an ideal Debt-Equity Ratio?
💡 Hint: Think about equal proportions of debt and equity.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is the formula for the Debt-Equity Ratio?
💡 Hint: Think about what two elements of capital are compared.
True or false: A Debt-Equity Ratio higher than 1 indicates a company is less risky.
💡 Hint: Consider what high debt means for a company.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A company has long-term debts of ₹150,000 and shareholders' equity of ₹100,000. Calculate the Debt-Equity Ratio and discuss its implications.
💡 Hint: What does a ratio greater than 1 signify?
Analyze the effect on the Debt-Equity Ratio if a company pays off ₹30,000 of its long-term debt while having ₹120,000 in shareholders’ equity.
💡 Hint: How does reducing debt affect the ratio?
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