Question

Rajan Company's most recent balance sheet reported total assets of $1.84 million, total liabilities of $0.83 million, and total equity of $1.01 million. Its Debt to equity ratio is:

Answer 1

Answer:

82.17%

Step-by-step explanation:

Calculation of Rajan Company's Debt to equity ratio

Using this formula

Debt to equity ratio= Total liabilities/Total Equity

Where,

Total liabilities=$830,000

Total Equity=$1,010,000

Hence,

Let plug in the formula

Debt to equity ratio =$830,000/$1,010,000

Debt to equity ratio =0.8217 ×100

Debt to equity ratio =82.17%

Therefore Rajan's Company Debt to equity ratio is 82.17%