Final answer:
The debt to equity ratio for a company with the total debt of 538 and shareholder's equity of 507 is calculated to be approximately 1.06.
Step-by-step explanation:
The debt to equity ratio is a financial metric that compares the total debt of a company to its total shareholder's equity. It is calculated by dividing the total debt by the total shareholders' equity. In this case, the total debt is 538, and the total shareholders' equity is 507.
To calculate the debt to equity ratio, use the formula:
Debt to Equity Ratio = Total Debt / Shareholders' Equity
Plugging in the given values:
Debt to Equity Ratio = 538 / 507 = 1.0611
Therefore, the debt to equity ratio is approximately 1.06.
The final answer in a two line explanation in 200 words: The debt to equity ratio for the given figures is 1.06, which indicates that the company has slightly more debt than equity.