Hey john
In the bpp revision kit question on mercury- it says that the average market gearing (debt to total market value) is estimated to 25%
Now my q is debt should be 25 and as total market value is market value of company which is equity so equity is 100
But they have written equity has 75?
Why? Thanks
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Gearing
7y ago#1The total market value is debt plus equity - not simply equity.
I do stress this in my free lectures.
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