non current asset 100
Current asset 15
Total asset 115
Share capital 20
Retained earnings 35
reserves 5
non current liability -loan 25
current liability 30
(1) When calculating Wacc/ gearing- for equity which amount to use 20 or 60 (20+35+5)
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Wacc / Gearing
11y ago#160.
If you are using values from the SOFP, then it is the total of shareholders funds.
However, if market values are available, then using market values is a better measure for gearing. In that case it is just the total market value of the shares (reserves are effectively already included in the market value).
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