a) A company may choose to finance its activities mainly by equity capital, with low borrowings (low gearing) or by relying on high borrowings with relatively low equity capital (high gearing). Explain why a highly geared company is generally more risky from an investors point of view than a company with low gearing. (b) Ratio analysis in general can be useful in comparing the performance of two companies, but it has its limitations. State and briefly explain five of such limitations