Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

For Further Financing till What Limit Debt/Equity Ratio is acceptable ? Please Advise

user-image
Question ajoutée par Muhammad Umair Arain , General Accountant , Heart Beat Medical Center & One Day Surgery LLC
Date de publication: 2015/03/14
Mohsin Diwan
par Mohsin Diwan , Accountant , Quality Punch

Well professionals said1:1 ratio is reasonable but not a final. In today's market early business stages rely heavily on equity financing rather debt because of cash flow surety.

Anas  Dawah
par Anas Dawah , Senior Internal Auditor , Talal Abu-Ghazaleh Global (TAGI)

the optimal capital structure ( debt/equity mix ) is the capital structure that minimizes the weighted average cost of capital  {sum ( Wi * Ci )}

_ debt is lower cost than equity

Soumya Kanta Nayak
par Soumya Kanta Nayak , Branch Manager , ICICI Bank Ltd

There is no such standard or fixed rule for ideal D/E ratio. But as a thumb rule its1.33. But again it depends on the industry type you are dealing. Let say in construction industry the D/E ratio is normally high as major construction work are done by debt funding.

Hafiz Haroon Khalid
par Hafiz Haroon Khalid , Pharma associate , Sanofi aventis

60%you must be contain that ratio4 smooth survival

More Questions Like This