Gearing
renae
Registered Posts: 76 Regular contributor ⭐
Hi,
Can anyone tell me the figures used in the gearing calculation in the pev june 08 exam?
Having missed most of college this year I am trying to teach myself the course and can't seem to get my head around it.
I know the formula but if someone could let me know the figures used to get to the answer then that would be great x
Can anyone tell me the figures used in the gearing calculation in the pev june 08 exam?
Having missed most of college this year I am trying to teach myself the course and can't seem to get my head around it.
I know the formula but if someone could let me know the figures used to get to the answer then that would be great x
0
Comments
-
Hi
The Gearing ratio in PEV June 08
12000/12000+8400X100=58.82%
OR
12000/8400=1.428
I hope this helps0 -
Hi
The standard formula is :
Gearing = Loans/loans+equity capital
12000/12000+8400X100=58.82%
if the gearing figure is more than 60%, it is generally reported high; 100% is very high.
Less than 20% could be taken as low. but in all cases it depends upon the prevailing circumstances at the time and what point of comparison is.0 -
thanks to both, I finallly get it! Well, thats 2% of the paper covered!0
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