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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › gearing ratio
in gearing ratio (debt/equity) i consider debt as prior charge capital hence i would always think preferance share( both reedemable and irredemable prefarance share) as part of debt unless the question requirement tells me otherwise.am i correct in my assumption
Preference shares are often regarded as more like debt than equity and are therefore out on the top line of the ratio.
