Summary:
The business plan involves starting a Bayra juice processing enterprise in Arbaminch, Ethiopia. The total investment required is 350,000 ETB, with 300,000 ETB to be obtained from a bank loan and 50,000 ETB to be invested by the founding team.
Debt Equity Ratio Calculation:
Debt Equity Ratio = Total Debt / Total Equity
Total Debt = 300,000 ETB (bank loan)
Total Equity = 50,000 ETB (investment by founders)
Debt Equity Ratio = 300,000 / 50,000 = 6
Therefore, the debt equity ratio for the Bayra juice processing enterprise is 6. This indicates that the business is heavily relying on debt financing compared to equity.
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 about 300000 ETB AND 50000 ETB OS our investment . So summarize above idea and calculate debt equity ration
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