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Forums › ACCA Forums › ACCA SBL Strategic Business Leader Forums › Wrong geaing ratio?
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.
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)
