I'm writing business plan on Bayra juice processing enterprise at arbaminch Ethiopia. We need about 350000 ETB to start up the business. And we get this fund from bank loan. So summarize above idea and calculate debt equity ration
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The Bayra juice processing enterprise in Arbaminch, Ethiopia requires around 350,000 ETB to start up the business. This amount will be obtained through a bank loan. The debt equity ratio can be calculated by dividing the total loan amount by the equity invested in the business. For example, if 350,000 ETB is borrowed as a loan and no equity is invested, the debt equity ratio would be 1:0. However, if some equity is invested, the ratio would be different. It is important to consider the debt equity ratio when seeking financing, as it reflects the financial leverage of the business.