1)Sir as you said that low proportion of intangible assets mean high proportion of tangible assets, so it means that company may certainly have to borrow more money (debt) in order to finance the tangible assets and therefore it will result in high financial gearing. Right?
2) Sir as the papers have moved to CBE version now, I want to ask 1 thing while performing section C of paper on spreadsheet in exam , is it necessary to insert formulas of sum/difference/multiply/divide etc in cells OR can we also perform calculations manually on our manual calculator and then directly write figures on spreadsheet ?
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1. Right, except I did not say that it definitely means they have to borrow more money (and neither did the question). I say it was the most likely reason of the 4 choices.
2. You need to show your workings - either my inserting formulae (best) or by typing out how you are arriving at the figure.
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