Question

Debt to Equity Ratio = `?/(₹ 5,00,000) = 0.36 : 1`

Answer 1

Debt to Equity Ratio = `bb(₹ 1,80,000)/(₹ 5,00,000) = 0.36 : 1`

Explanation:

Given:

$\text{Equity (Shareholders' Funds)} = \text{₹ } 5,00,000$

$\text{Debt to Equity Ratio} = 0.36 : 1$

$$\text{Debt to Equity Ratio} = \frac{\text{Debt}}{\text{Equity}}$$ 

Substituting the values into the formula:
$$\frac{\text{Debt}}{5,00,000} = \frac{0.36}{1}$$

$$\text{Debt} = 5,00,000 \times 0.36 = {₹\ 1,80,000}$$