Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Geared Ltd achieved a Return on Equity of 20% for the last year, which was distributed as a dividend. The company has a Debt-Equity ratio
Geared Ltd achieved a Return on Equity of 20% for the last year, which was distributed as a dividend. The company has a Debt-Equity ratio of 4, and the Interest Cover Ratio for the last year was 3. If the total of Debt is 10,000,000, what was the rate of interest on that debt for the last year, assuming tax is zero
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started