mercury training jun 2008

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This topic contains 3 replies, has 4 voices, and was last updated by Avatar of johnmoffat John Moffat 1 year, 5 months ago. This post has been viewed 57 times

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    mula
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    • Topics: 2
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    i am lost on how the ve of 88 and vd value were calculated. please help


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    dazhong0703
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    Gearing of Jupiter is 12%, so equity is 88%, and debt is 12%.


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    muhaimin
    Participant
    • Topics: 1
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    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”


    Avatar of johnmoffat
    John Moffat
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    Muhaimin 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%!

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