Answer:
0.5.
Explanation:
Assets - Liabilities = Owner's Equity.
As the name states, the debt to equity ratio is simply obtained by dividing total debt (liabilities) by the total equity, total assets should not be included:

Rajan Company's debt to equity ratio is 0.5.
Answer:
It will take 2.73 years to cover the initial investment.
Explanation:
<u>The payback period is the time required to cover the initial investment:</u>
Year 1= 0 - 2,400= -2,400
Year 2= 1,600 - 2,400= -800
Year 3= 1,100 - 800= $300
<u>To be more accurate:</u>
(800/1,100)= 0.73
It will take 2.73 years to cover the initial investment.