Assume that the rate of profits (p) on combined debt and equity is fixed at 22%. Debt/Equity Ratio Proportion of Profits absorbed by Interest (Gearing) r=10% r=15% r=20% 0.5 ? ? ? 1.5 ? ? ? 2.5 ? ? ? (i) Complete the table above for the proportion of profits absorbed by interest. (3 marks) (ii) What can you conclude about the impact of primary gearing on the vulnerability of a company to rises in interest rates?