Financial and Management Accounting

1: The firm is said to be more geared, if equity capital is more than the debentures and -------
A.

Preference share capital

B.

Loan

C.

Both (a) +(b)

D.

Total assets

 

Answer : C

Explanation :

Capital Gearing Ratio = (Equity Share Capital ) / (Preference Share Capital + Debentures + Loans)

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Option: A

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