FACULTY 14 May 2020 at 03:36 PM

debt equity ratio = 66.667 or (66 2/3)

Total asset = 1000000

so, 1x+.6667 x = 1000000

here x = equity

1.6667x = 1000000

x= 1000000/1.6667

 =600000

equity = 600000

then debt = 400000

if we purchase 200000 of asset with debt them debt and equity will be equal

new debt to equity ratio=600000/600000

= 100%