A company has a debt-to-equity ratio of 2:1. It plans to raise additional capital such that the overall debt-to-equity ratio becomes 1:1. Assuming…
CA Intermediate · Financial Management and Strategic Management · MTP · September 2025
A company has a debt-to-equity ratio of 2:1. It plans to raise additional capital such that the overall debt-to-equity ratio becomes 1:1. Assuming the company raises only equity for this purpose, by what percentage must the equity increase?
Suggested Answer and Working Notes:
Correct Answer: Option (B)
100%
Topics: Part-A: Financial Management
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