Multiple Choice
Using the formula, gearing ratio = long-term liabilities/ (shareholders' funds + long-term liabilities) × 100/1, calculate the gearing ratio from the following information. Long-term liabilities $18m, Shareholders' funds $14m.
A) 128%.
B) 56%.
C) 78%.
D) 44%.
Correct Answer:
Verified
Correct Answer:
Verified
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