1 Using the accounting information provided below, calculate the following measures of gearing:

■ long-term debt (LTD) to equity

■ LTD to LTD plus equity

■ total debt to equity

■ net debt in absolute terms

■ net debt to equity

■ total debt to total assets

■ interest cover

■ income gearing

■ total liabilities to total assets

Transcribed Image Text:

Shareholders' funds Cash Short-term deposits Short-term bank borrowing 500 m 20 m 40 m 50 m Debentures and other long-term debts 200 m Total assets 800 m Total liabilities 300 m Profit before interest and tax 120 m Net interest payable 25 m