Sir
1) Equity means Ordinary share capital + reserves ?
2)Total long term capital means Debt + equity? and debts are long term borrowings/loans?
3)Can operating gearing be calculated by formula i,e Fixed cost / Total cost?
4) In chap 13 example 2, it was mentioned just Share capital, so here we would assume it as ordinary share capital instead of preference share capital?
Ask the Tutor ACCA FM
Few questions
1. Yes
2. Yes
3. yes - there is no standard measure of operating gearing
4. Yes
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