Prior charge capital — OpenTuition Forums

KKanan7y ago

Hi My Dear Tutor, I have a question.Could you explain it please? Gearing=Prior charge capital/equity What is prior charge capital? Thanks in advance

John MoffatTutor7y ago#1

Capital that gets the interest/dividends before any dividend to ordinary shareholders can be paid. So long-term borrowings and preference shares.

KKanan7y ago#2

thank you very much.Your lectures from F9 are just amazing..

John MoffatTutor7y ago#3

You are welcome (and thank you for your comment) :-)

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