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Long-term debt Rs. 5,00,000 and shareholders' funds Rs. 15,00,000. What is the debt-equity ratio?

A3 : 1
B0.75 : 1
C0.33 : 1
D4 : 1
Answer & Solution
Correct answer: C. 0.33 : 1
5,00,000 divided by 15,00,000 is one third, about 0.33 : 1.
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