Hello John,
I'm working through chapter 9 on the example 1 review of Repse Plc.
Please could you advise me how (in the standard answer) you arrive at the "book values" percentages in the gearing analysis (yr 1 - 50%, yr2 34.6% etc)
I'm sure the answer is staring me in the face but I can't get to it!!
Many thanks
Marky
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Opentuition chapter 9 - gearing
12y ago#1Gearing = Long term debt/equity [ie shareholders' funds]
Year 1 = 11,300/22,600 = 50% Year 2 = 9,000/26,000 = 34.6%
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