high k co – gearing ratio

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August 31, 2019 at 3:41 am #543915
chelseawong
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Hi sir,

may i know how to get 37.6 in 2014 under gearing, solvency?
August 31, 2019 at 9:07 am #543941
John Moffat
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In future please tell me which exam the question is from (or which question in the BPP Revision Kit)!

The non-current liabilities are $1,706M. The market value of the equity is 800M x $3.54 = $2,832M.

Therefore the gearing is 1,706 / (2,832 + 1,706) = 37.6%
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