Chapter 16, 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.

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

To Compute:

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