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Short term debt

Ggot909y ago
Sir in what circumstances can we include short term debt in calculation of financial gearing? My BPP book says we can always except when using capital employed as denominater. But an MCQ in the Kaplan kit where we were using market values as the figures and formula to use was Prior charge capital/ equity didnt use short term debt.
John MoffatJohn MoffatTutor9y ago#1
It depends on the context of the question. Short term debt is not relevant, unless it is the case that we intend to keep the short term debt for the long term. If so, then it is relevant.
Ggot909y ago#2
Oh okay Thanks.
John MoffatJohn MoffatTutor9y ago#3
You are welcome :-)
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