Question

An entity has Equity Share Capital (equity 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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