Debt Equity Ratio: Debt Equity Ratio is a measure of the proportion of how much debt has been used to finance the equity and operations of the business. A higher Debt equity ratio represents a highly leveraged business. A high Debt Equity Ratio is also an indicator of higher interest payments and lower profitability. Debt Equity Ratio = Debt Equity To Compute: Debt Equity ratio for the entity at the end of the year

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Chapter 14, Problem 14F15

To determine

Concept Introduction:Debt Equity Ratio:

Debt Equity Ratio is a measure of the proportion of how much debt has been used to finance the equity and operations of the business.

A higher Debt equity ratio represents a highly leveraged business.

A high Debt Equity Ratio is also an indicator of higher interest payments and lower profitability.

Debt Equity Ratio =DebtEquity

To Compute:

Debt Equity ratio for the entity at the end of the year

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