The debt-equity ratio of a company is 0.8: 1. State whether the long-term loan obtained by the company will increase, decrease or not change the ratio. Post category:Accountancy Reading time:1 mins read SOLUTION Debt-equity ratio will increase because long-term debts are increased but total equity remain unchanged. Please Share This Share this content Opens in a new window Twitter Opens in a new window Facebook Opens in a new window Google+ Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostState with reason whether repayment of long-term loan will result in increase, decrease or no change of debt-equity ratio. Next PostWhat will be the impact of ‘Issue of shares against the purchase of fixed assets’ on a debt equity ratio of 1: 1? You Might Also Like Total Debt Rs. 60,00,000; Shareholders’ Funds Rs. 10,00,000; Reserves and Surplus Rs. 2,50,000; Current Assets Rs. 25,00,000; Working Capital Rs. 5,00,000. Calculate Total Assets to Debt Ratio. August 12, 2022 Name any two items that can be disclosed under ‘Reserve and Surplus’. September 30, 2022 In the absence of any provision in the partnership deed, at what rate is a working partner entitled for remuneration? September 26, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.