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MenuWhy is the permissible debt ratio for a company set at 1/3? What is this number based on?
I read from many websites that explain the criteria for selecting shariah compliant stocks that the maximum debt ratio a company can have is up to 1/3. I am wondering what the reason for this number is. Why is it limited only to that much and what shar’i evidence do they quote for basing that number off of?
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