Question

An entity has Equity Share Capital (equity

Q: Answer-An entity has Equity Share Capital (equity shareholders’ funds) of ₹10,00,000, Preference Share Capi...

Fixed cost capital Preference share capital Long-term debt 4,00,000 6,00,000 10,00,000 Equity shareholders funds 10,00,000 Capital gearing ratio 10,00,000 10,00,000 11.

shareholders’ funds) of ₹10,00,000, Preference Share Capital of ₹4,00,000, and Long-term Debt of ₹6,00,000. Compute the Capital Gearing Ratio.

A 1:1

B 2:1

C 1.5:1

D 0.8:1

E 0.6:1

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An entity has Equity Share Capital (equity

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