Followup

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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May 6, 2018 at 4:09 pm #450348
humai
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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?
May 6, 2018 at 5:48 pm #450359
John Moffat
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Nobody 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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