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Wrong geaing ratio?

This topic has 1 reply, 2 voices, and was last updated 13 years ago by java2010.

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December 10, 2010 at 12:48 pm #46870
Anonymous
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In the answer of question no-1 of december 2007 exam, the gearing ratio mentioned 71.05% for yr 2004 and 71.13% for yr 2006 which is wrong I think. Is there anybody who can confirm me? Please let me know as i am confused whether I am missing something.
December 12, 2010 at 1:08 pm #74360
java2010
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The calculations are correct if you use debt/(debt+equity) as the gearing (as a percentage). You can also calculate as a ratio (debt/equity)
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