Opentuition chapter 9 – gearing

This topic has 1 reply, 2 voices, and was last updated 11 years ago by Ken Garrett.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
August 27, 2014 at 8:36 pm #192574
marky123
Member
- Topics: 46
- Replies: 190
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
August 29, 2014 at 1:26 pm #192921
Ken Garrett
Keymaster
- Topics: 10
- Replies: 10660
Gearing = Long term debt/equity [ie shareholders’ funds]

Year 1 = 11,300/22,600 = 50% Year 2 = 9,000/26,000 = 34.6%
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.