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Question
Bajaj Hindustan Sugar, one of the largest sugar and ethanol producers, in order to revive the company, has offered to invest ₹ 2,500 crore as fresh equity of which ₹ 1,000 crore has already been infused.
What will be the effect of this decision of Bajaj Hindustan Sugar on its DebtEquity Ratio?
Solution
The ratio will reduce or decline.
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