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Which of the following changes in gearing would apply to a company that substantially increases its investment in non-current assets as a proportion of total

Which of the following changes in gearing would apply to a company that substantially increases its investment in non-current assets as a proportion of total assets and replaces some of its long-term debt with equity?

Financial Gearing Operating Gearing

A.

Increase Increase

B.

Increase Decrease

C.

Decrease Increase

D.

Decrease Decrease

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