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Which of the following ratio establishes relationship of 'shareholders funds' to 'Net assets'? - Accountancy

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Question

Which of the following ratio establishes relationship of 'Shareholders funds' to 'Net assets'?

Options

  • Return on Investment

  • Interest Coverage Ratio

  • Proprietary Ratio

  • Debt-Equity Ratio

MCQ

Solution

Proprietary Ratio

Explanation:

Proprietary Ratio = `"Shareholder's Funds"/"Total Assets"`

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2021-2022 (December) Term 1
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