At 31 December 2017 Bagsack Co had equity of 9.75 million, long-term loan notes of 3.125 million and longterm lease (=finance lease) obligations of 1.5 million.

During the year to 31 December 2018 equity increased by 2.8 million, 1.725 million of longterm loan notes were paid back and longterm lease obligations increased by 450,000.

What is Bagsack Co's level of gearing (debt/ debt +equity) at 31 December 2018?

35%

21%

28%

10%