Question : X Ltd has a debt-equity ratio at 3 : 1. According to the management it should be maintained at 1 : 1. What are the choice in front of the management to do so -
Option 1: Increase Equity
Option 2: Redeuce debt
Option 3: Both of the above
Option 4: None of the above
Answer (1)
22nd Jan, 2024
Correct Answer: Both of the above
Solution : The company must either increase equity, decrease debt, or do both in order to balance the debt to equity ratio.
Hence the correct answer is option 3.
Comments (0)
Related Questions
Trending Articles/News
