How do you compute the debt to equity ratio since the


If a company has the following structure

Assets: ........... 10,000

Total Debt: ..........25, 000

Equity

Common stock & APIC: .... 5,000

Deficit: .......... (20,000)

Total equity: ........ (15,000)

How do you compute the debt to equity ratio since the formula I know is Total Debt / Total Equity? Is it possible for the debt to equity ratio to be negative?

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Finance Basics: How do you compute the debt to equity ratio since the
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