louieed co m/j 2016

)Sir, in this question part (c), can we use gearing ratio = debt / equity rather that the suggested answer in which gearing ratio is calculated as debt/(debt + equity)?

Certainly (and the discussion round it will remain the same) :-)

Sorry - it was because of the other question that appeared :-( It is because it is because Louieed is offering new shares and so the PE implied by the new issue is calculated basis on the current share price. (Obviously what actually happens depends on whether or not the offer is accepted, but the question asks what PE is implied by the offer).