Better Belter Limited has the following capital structure at 31 October 20X7:

if Ordinary share capital (£1 shares) 80 000 Reserves 696 400 Long-term loans (8% interest rate) 300 000 Profit before interest and tax for the year ending 31 October 20X7 was

£35 000, and interest payable was £24 000. Calculate the following ratios:

i) gearing (on the basis of debt/equity)

li) interest cover.