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Debt/Equity calculations
raymond12 Leaving Cert Business — 16/06/16 2

in 2014 Q5 [B] [ii] i got a ratio of 3:1, equity to debt. but in the marking scheme its 1.3:1. i added up the same figures as well, its just my final answer thats different. anyone know why??

slynch97 — 15/06/16
Marking scheme often is a bit dodgy with that sort of thing. Debt/Equity is long term debt + pref shares : ORDINARY share capital + retained earnings. Once you've subbed the respective figures in, that is the correct answer. Gwan Raymond
raymond12 — 16/06/16
Thank you
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