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Operational gearing is of interest not only to managers, but also to investors, since it may affect their investment decisions. While they may have a

"Operational gearing is of interest not only to managers, but also to investors, since it may affect their investment decisions. While they may have a view on an appropriate level of operational gearing for a company based on their understanding of its business, they cannot confirm that view, since it's not possible to calculate a reliable gearing ratio from published accounts." (Steven, 2006)

Required: Critically discuss the above statement.

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