Based on following information of a company as at 31 March, 2017. Answer question. Items  Rs.  Inventory  1,00,000  Total Current Assets  1,60,000  Shareholders Fund  4,00,000  13% Debentures  3,00,000  Current liabilities  1,00,000  Net Profit before Tax  3,51,000  Cost of Revenue from operations   5,00,000

Calculate Debt Equity Ratio.

2 : 1 1 : 1 0.75 : 1 0.50 : 1

0.75 : 1

The correct answer is Option (3) → 0.75 : 1 Debt-Equity Ratio = Long-term Debts / Shareholders’ Funds                           = 3,00,000 / 4,00,000                           = 0.75 : 1 * Long term debts = 13% debentures