n NISM Certifications
XV NISM Series XV
Medium

If a company has a debt-equity ratio of 0.6 and total debt of Rs. 120 crores, what is the equity?

Practice question from NISM XV Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Rs. 50 crores

  2. Rs. 72 crores

    Correct answer

  3. C

    Rs. 200 crores

  4. D

    Rs. 120 crores

Why this is the answer

Let's calculate: Debt/Equity = 0.6 → Equity = Debt / 0.6 = 120 / 0.6 = 200.

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