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Gearing

This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.

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December 7, 2021 at 11:36 am #642901
humai
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Sir for Afm paper, we have to use the formula debt/equity OR debt/debt+equity for gearing?
December 7, 2021 at 3:42 pm #642920
John Moffat
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Either – it does not matter (unless the examiner specifies which to use) because any discussion regarding an increase or decrease in the gearing will be the same whichever way you are measuring it.
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