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A question Kaplan kit, says find gearing ratio of the entity.
In answer, it was defining gearing ratio as (Debt/Capital Employed).My question is Debt/Equity is not a gearing ratio? Or both are called gearing ratios.
It really does seem as though you are not watching my free lectures and you cannot therefore expect me to type out my lectures again here !!!
Look at page 121 of our free lecture notes for the definition of the gearing ratio.
Debt/equity is a measure of gearing also, but unless you are specifically asked to calculate debt/equity in the exam you should use the definition in our lecture notes.
Yes tutor, you are right. Actually, I have my exam within 20 days and a month or two ago, I came to know about Opentuitions. I will be not able to cover all videos, as I was giving MA2 (FIA) exam, that is why I have studied on my own and any queries arise so I directly contact you. I am very sorry for disturbing you even I feel bad. Thank you tutor.
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