Ratio example - Gearing (kaplan Q 416)

SStudent4y ago

In the Kaplan exam kit for Q416 the Gearing ratio is calculated with a bottom figure of 9500. Im not sure how they get this figure Total equity is 2800 and even if you include loans it doesn’t come to 9500 Could someone please help me here thanks

P2-D2Tutor4y ago#1

Hi, I've not got the kit to hand so can't fully answer the question, but gearing is usually debt divided by debt plus equity. What other debt (interest bearing) is there in the SFP? Could they have included some current liability debt? Thanks

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