The following figures have been extracted from the published financial statements of MBC plc, at 31 October 20X5: $m Ordinary share capital Share premium 30 3 Reserves 38 6% debentures 10 48 The profit for the period (after tax of $1 m) for the year to 31 October 20X5 was $4 m and dividends paid amounted to $0.5 m. The company is considering raising a further $10m in the next financial year to finance research and development. Requirements (a) Insert the missing words, phrases or figures into the following: (i) The gearing ratio formula is: X 100 = % $4 (ii) The gearing ratio for MBC plc is: X 100 = $ (iii) The return on total capital employed formula is: X 100 = $ (iv) The return on total capital employed for MBC plc is: 2$ X 100 = % (b) If the company raises an additional $10m through the issue of shares: (i) Calculate the gearing ratio for the next year: 2$ X 100 = $ (ii) Calculate the ROCE for the next year: 2$ X 100 = % 2$ (c) If the company raises an additional $10m through the issue of 6 per cent debentures: (i) Calculate the gearing ratio for the next year: 2$ X 100 = 2$ (ii) Calculate the ROCE for the next year: 2$ X 100 = 2$ (d) Insert the missing word in these sentences: research is into new scientific or technological principles. research infers a more practical nature, but not necessarily leading to a (i) (ii) practical application. (iii) expected to produce profits. expenditure is where there is a clearly defined outcome and which is