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Which one of the following would result in a reduction in gearing? Gearing (%) = (Non-equity finance / capital employed) 100 A A new loan

Which one of the following would result in a reduction in gearing?

Gearing (%) = (Non-equity finance / capital employed) 100

A A new loan taken out to repay an old loan. The new loan has lower interest rates

B Acquiring an asset under a lease. C Repaying a long term loan shortly before the year end. D Repurchase of equity shares using funds raised from new share issue.

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