Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 19, 2024

Using the formula, gearing ratio = long-term liabilities/ (shareholders' funds + long-term liabilities) 100%, calculate the gearing ratio from the following information. Long-term liabilities $20m

Using the formula, gearing ratio = long-term liabilities/ (shareholders' funds + long-term liabilities) 100%, calculate the gearing ratio from the following information.

Long-term liabilities $20m

Share capital $14m Retained earnings $6m General reserve $2m

(NOTE): upon completing this test i have found the answer is 48%. I am just unsure how to come to that answer and would like to see the working out.

Thanks!

A. 91%.

B. 48%.

C. 59%.

D. 56%.

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

Recommended Textbook for

Bill Payment Tracker Monthly Bill Payment Organizer To Track Expenses Plan Budgets Set Due Date Reminders Monitor Spending Stay Organized And Maintain Payment Records

Authors: Hannah Logbooks

B0CJLCNRMV

More Books

Students also viewed these Accounting questions

Question

★★★★★

If a company currently employs the chase strategy and the cost of training increases dramatically, how might this change the companys aggregate planning strategy?

Answered: 1 week ago

Question

★★★★★

=+15.21 Parents are frequently concerned when their child seems slow to begin walking (although when the child finally walks, the resulting havoc sometimes has the parents wishing they could turn...

Answered: 1 week ago

Question

★★★★★

Virginia Partners, Ltd. (Virginia Partners), a limited partnership organized under the laws of Florida, conducted business in Kentucky but failed to register as a foreign limited partnership, as...

Answered: 1 week ago

Question

★★★★★

Using the formula, gearing ratio = long-term liabilities/ (shareholders' funds + long-term liabilities) 100%, calculate the gearing ratio from the following information. Long-term liabilities $20m...

Answered: 1 week ago

Question

★★★★★

Suppose a random sample of size n = 36 has been selected from a population with = 30 and a sample mean of x = 205 What is the 95% confidence interval estimate of ?

Answered: 1 week ago

Question

★★★★★

Describe effectiveness of reading at night?

Answered: 1 week ago

Question

★★★★★

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago

Question

★★★★★

Exercise 15-30 (Algo) Evaluate Transfer Pricing System (LO 15-2, 3) Hardyke Group operates a local after-school recreation and activities program. The Education Department is a state governmental...

Answered: 1 week ago

Question

★★★★★

Golden Food Products produces special - formula pet food. The company carries no inventories. The master budget calls for theRequired: Prepare a profit variance analysis. Note: Enter your answers in...

Answered: 1 week ago

Question

★★★★★

Redwood Company sells craft kits and supplies to retail outlets and through its catalog. Some of the items are manufactured by Redwood, while others are purchased for resale. For the products it...

Answered: 1 week ago

Question

★★★★★

(Appendices) Select a commonly used product, such as gasoline or milk, and track the prices of this product over a 20-year period by creating a line graph. Explain price increases and decreases based...

Answered: 1 week ago

Question

★★★★★

(Appendices) Search magazines, newspapers, and the Internet for advertisements. Collect or print out ads that offer the following: (a) something for nothing, (b) bonus for early reply, (c) offers of...

Answered: 1 week ago

Question

★★★★★

(Appendices) Brandon, age 32, is married and has a son, age one. Six months ago, Brandon purchased an individual health insurance policy covering the entire family. His son was recently diagnosed...

Answered: 1 week ago

Previous Question Next Question