Here I have solved Illustration 5 of the ICAI Study Material and this problem focuses on the Debt Equity Ratio Test.

I have explained how to calculate the maximum number of shares to be bought back according to Debt Equity Ratio Test through Simultaneous Equation Method and Shortcut Method.

⏱TIMESTAMPS
00:00 - Intro
00:12 - Question
02:04 - Debt Equity Ratio Concept
06:50 - Simultaneous Equation
17:17 - Shortcut Method

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