Acompany has $14,000 in liabilities and $15,000 in equity. calculate the company's debt to equity ratio as a percentage.

The required debt-equity ratio is 14:15

Solution:

Given:

Liabilities of the company = $14000

Equity of the company = $15000

To calculate: The debt-equity ratio

Here, the liabilities are included in the debt of the company. The debt-to-equity (D/E) ratio is calculated by dividing a company's total liabilities by its shareholder equity. Therefore, the debt equity ratio is as follows,

The debt-equity ratio reflects the ability of shareholder equity to cover all outstanding debts in the event of a business downturn.

step-by-step explanation:

the true statements are:

r = set of real numbers

n = set of natural numbers, 1,2,

w = n u{0} = {0,1,}