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Debt Equity Ratio of a company is 1:2. P...

Debt Equity Ratio of a company is 1:2. Purchase of a Fixed asset for ₹ 5,00,000 on long term deferred payment basis will increase, decrease or not change the ratio?

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The correct Answer is:
Increased
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Debt to Equity Ratio of a company is 0.5:1 which of the following suggestions would increase,decrease or not change it: (i) issue of equity shares, , (ii) cash received from debtors, (iii) Redemption of debentrues, , (iv) purchased goods on credit?

Assuming that the debt to equity ratio is 2:1 state giving reasons, which of the following transacitons would (i) increase,(ii) decrease,(iii) not alter debt to equity ratio: (i) issue of new shares for cash. conversion of debentrues into equity shares (iii) sale of a fixed asset at profit (iv) puchase of a fixed asset on long term deferred payment basis (v) payment ot creditors.