Debt to Equity Ratio: This ratio reflects the relationship of company’s total liabilities to total equity. It is used to represent financial leverage in the business. Higher ratio means that the company has used debts more than the owner’s capital to acquire the assets.
Internal growth rate: It refers to that rate which represents the growth of a firm at maximum rate without utilization of funds from external sources.
To determine:
The new debt-equity ratio of I Company.
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