Question
The following financial data is available for DEF plc. ('000) revenue 15,520 profit after tax 4600 PBIT 6300 current assets 1030 current liabilities 955 long
revenue 15,520
profit after tax 4600
PBIT 6300
current assets 1030
current liabilities 955
long term liabilities 5600
equity plus reserves 18450
DEF plans to raise £2 million in finance by issuing 8% debentures,.
what would the new financial gearing be after the issue? using debt/(debt+equity). show your work.
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Accounting concepts and applications
Authors: Albrecht Stice, Stice Swain
11th Edition
978-0538750196, 538745487, 538750197, 978-0538745482
