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gearing

This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.

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June 5, 2021 at 1:41 pm #623285
Noah098
- Topics: 936
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sir my exam kit says that “reduction in equity means that gearing ratio will deteriorate”

Isnt this wrong?

Reduction in equity should increase gearing, right?
June 6, 2021 at 1:08 pm #623436
Stephen Widberg
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Increased gearing = bad = deteriorate
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