CREDIT MANG - GEARING RATIO CHANGES!!! HELP!!!

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LucieP
LucieP Registered Posts: 1
in Credit Management
Guys,

I have my CDMG exam soon as on the practise questions in Kaplan books they appear to use both methods to work out gearing. My question is, how will I know which method is used in the exam as the Kaplan questions don't mention it either and every time it is different and gives different % - which when doing the risk analysis questions, puts the whole lot out in scoring and recommendations which is worth a lot of points!

Please help!!

Thanks
Lucie

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  • rlincoln89
    rlincoln89 Registered Posts: 2 New contributor 🐸
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    the method in the exam is borrowing (short and long term) / borrowing (short and long term) + Equity

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