i am lost on how the ve of 88 and vd value were calculated. please help
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mercury training jun 2008
Gearing of Jupiter is 12%, so equity is 88%, and debt is 12%.
Simple is this! May be the next line clear it more.
"In this question Gearing refers to (total debt to total market value) and as we all know that total market value = Total debt + Equity"
"In this question Gearing refers to (total debt to total market value) and as we all know that total market value = Total debt + Equity"
13y ago#3Muhaimin is correct - gearing can be defined in more than one way, but the examiner has said in the question how he defines it.
If debt is 12% of the total, then equity is the other 88%!
If debt is 12% of the total, then equity is the other 88%!
He has written TOTAL MV which means debt plus equity ie 12 + 88. Sir if he had written only MV , would it have meant only equity then? Thnk u
10y ago#5He would never write it that way (because it would not be clear).
He will always say either "debt to total market value" or "debt to equity".
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