Workbook Question 5.2 (Osbourne Books)
John_Clyne
Registered Posts: 26
Hi all, could someone please explain how to work out the Gearing Ratio % for the question above. Thanks in advance.
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Comments
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Gearing ratio is..
Debt x 100 / Debt + Equity.
Cannot see any question above though?0 -
Hi Emma, I was referring to the question in the title in the hope someone currently studying the module was using the same resource. Maybe I can post the question later
I'm sure my book describes the formula as:
(Debt / Debt + Equity) x 100
Perhaps its a typo by Osborne.0 -
I have always used the (Debt / Debt + Equity) x 100 formula0
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The 2 formulae are functionally the same the x 100 can go on the top of the fraction or after the whole thing.
You could even do:
(100/(Debt+Equity)) x Debt or (1/(Debt+Equity)) x Debt x 100
Unfortunatly I don't have my osborne books on hand at work anymore so can't see the question.
I will add that written convention would have it as
(Debt/(Debt+Equity)) x 100
This is simply because the x 100 just converts the decimal ratio to a percentageAAT Level 4, MAAT
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John_Clyne said:
Hi Emma, I was referring to the question in the title in the hope someone currently studying the module was using the same resource. Maybe I can post the question later
I'm sure my book describes the formula as:
(Debt / Debt + Equity) x 100
Perhaps its a typo by Osborne.
Hi John,
Sorry but I don't have the text book so unsure of the exact question. I believe both formulas work but I always used debt x 100 / debt + equity.
Thank you0 -
those are the figures @Emmalouise180
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those are the figures @Emmalouise180
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those are the figures @Emmalouise180
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the file wont upload i dont know why @Emmalouise180
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> @John_Clyne said:
> Hi all, could someone please explain how to work out the Gearing Ratio % for the question above. Thanks in advance.
Hey did you ever find out the answer to this? I'm stuck on the exact same question and I can't understand how they've worked it out?0 -
Did anyone ever get the answer to this? Stuck on the same thing!0
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