The debt-equity ratio is a measure of the relative contribution of the creditors and shareholders or owners in the capital employed in the business. Simply stated, the ratio of the total long-term debt and equity capital in the business is called the debt-equity ratio.
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Debt Equity Ratio
The debt-equity ratio is a measure of the relative contribution of the creditors and shareholders or owners in the capital employed in the business. Simply stated, the ratio of the total long-term debt and equity capital in the business is called the debt-equity ratio.