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Debt/Equity Ratio

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Debt/Equity Ratio

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • Author
    Posts
  • November 30, 2018 at 5:44 pm #486604
    f6ali
    Member
    • Topics: 10
    • Replies: 341
    • ☆☆☆

    Hello Sir,
    hope you’re doing good.

    If in a question, we are given both book values and market values of debt and equity, and we have to include Debt/Equity ratio in our discussion, then should i use book values or market values?

    Thanks in advance.

    December 1, 2018 at 9:23 am #486640
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54802
    • ☆☆☆☆☆

    Usually it is made clear somewhere in the question which you are required to use. If not, then market values are better, as I explain in my free lectures.

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