Sir I still did not understand that how intangible assets being a low proportion of total assets will result in high financial gearing? Secondly by high financial gearing they mean to ask high financial gearing ratio?
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8y ago#1Nobody said that it will result in a high gearing ratio!!! The question asked which was more likely. The others will certainly not, and I explained why intangible assets might.
High financial gearing automatically means a higher financial gearing ratio.
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