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19 August, 03:00

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:

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  1. 19 August, 06:19
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    82.17%

    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%
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