Answer:
Debt to equity ratio of Rajan company is d) 0.73
Explanation:
The debt-to-equity (D/E) ratio compares a company’s total debt to its total equity and can be used to evaluate how much leverage a company is using.
Debt-to-equity ratio is calculated by using formula:
Debt-to-equity ratio = Total debt (or liabilities)/Total equity
Rajan company's most recent balance sheet reported total liabilities of $0.8 million, and total equity of 1.1 million
Debt-to-equity ratio = $800,000/$1,100,000 = 0.73
Answer:
d) 0.73
Explanation:
Debt to equity ratio is a financial measurement to gives insights into how much of an entity's operation are funded by debt and owners funds (equity).
Given that Rajan company's most recent balance sheet had the following;
Total asset = $1.9 million
Total liabilities = $0.8 million
Total equity = $1.1 million
Debt to equity ratio = $0.8 million/$1.1 million
= 0.73
