Gearing

This topic has 1 reply, 2 voices, and was last updated 10 years ago by mrjonbain.

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March 9, 2016 at 4:25 pm #304782
pinkyjovin123
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Sir,

Would a co be able to reduce gearing by selling an asset with carrying value and leasing it back under operating lease

Or,By revaluation
Or,taking out a loan to repay the existing loan

Which one is correct???
March 11, 2016 at 7:22 am #305458
mrjonbain
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If you want the tutor to answer you should use the ask the tutor forum.I think revaluation would reduce gearing provided it resulted in figure greater than carrying amount since this would increase valuation of assets relative to debt.
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