📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    Which of the following best describes ‘capital gearing

    ratio’?
    A Ratio of liquid assets to inventory Correct Answer Incorrect Answer
    B Ratio of fixed interest bearing capital to shareholders’ equity Correct Answer Incorrect Answer
    C Ratio of current liabilities to current assets Correct Answer Incorrect Answer
    D Return on capital employed Correct Answer Incorrect Answer
    E Debt service coverage ratio Correct Answer Incorrect Answer

    Solution

    Capital gearing measures the degree of financial leverage.

    Practice Next
    ask-question