- This topic has 6 replies, 2 voices, and was last updated 11 years ago by
.
-
Posts
-
1)may i know how to calculate debt ratio?
i) debt/ debt+equity
ii) total debt/ total asset2)why scrip issue will result in fall in market price per share?
or the gearing ratio it is debt / debt + equity
or debt / total assets less current liabilitiesBoth are the same. Total assets – current liabilities = equity + long-term debt
A scrip issue it the same as a bonus issue. So shareholders receive extra shares free. Because they are not paying in any more, the total value of the shares must remain unchanged. This means that if they have more shares, then the MV per share must be lower.
in Bpp textbook, the formula for debt ratio is total debt : total asset. debt ratio formula is different from the gearing ratio formula.
why it is total debt and total asset instead of long term debt/ total asset-current liabilty?
why it is total debt and total asset instead of long term debt/ total asset-current liabilty?
- You must be logged in to reply to this topic.