The variables ratio
Ve/ ve+vd
And Vd/ Ve+ vd
Are termed as market gearing ??
Am I correct ?
Ask the Tutor ACCA AFM
Market gearing
I don't know why you refer to it as 'the variables ratio'!!
Gearing can be measured as either debt / (debt + equity), or as debt / equity.
I explain all this in the my lectures :-)
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