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Economics - Financial Markets 22 Online
OpenStudy (a_clan):

What is debt-equity ratio? Also explain, how does raising equity by a company reduce debt burden?

OpenStudy (theconomist):

= Total debt/ Total Equity. Since Equity = Assets - Liabilities, the higher the equity, the lower the debt- equity ratio is (and it represents the company's ability to pay off its debts). (y) good luck

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