Answer:
1.44
Explanation:
A debt-equity can be defined as a measure of the ratio of the total liabilities held by a company to its shareholder's equity. The debt-equity ratio can be found in a company's balance sheet and it's typically a strategic approach used to assess or evaluate the risks that are associated with a company's financing structure.
Given the following data;
Total assets = $31,598,000.
Total liabilities = $18,648,000.
Total equity = $12,950,000.
To find the debt-equity ratio;
[tex] Debt-equity \; ratio = \frac {Total \; liability}{Total \; equity} [/tex]
Substituting into the equation, we have;
[tex] Debt-equity \; ratio = \frac {18,648,000}{12,950,000} [/tex]
Debt-equity ratio = 1.44
Therefore, the debt to equity ratio for the period is 1.44.
