Question
With the information given below, what is the Capital
Gearing ratio of the firm? Stockholders’ equity = 500,000 Total Long term debt =60,000 Bonds Payable =40,000Solution
Capital gearing is the degree to which a company acquires assets or to which it funds its ongoing operations with long- or short-term debt. Capital gearing will differ between companies and industries, and will often change over time. Capital gearing is also known as "financial leverage". Capital Gearing ratio = Shareholder’s equity/Fixed cost bearing funds = 500,000/(60,000+40,000)= 5
Consider the following statements:
Assertion (A): Alcohol, instead of mercury, is used in thermometers to measure temperatures up to 60°C.
<...Statement:
Should Non-Resident Indians (NRIs) be entitled to dual citizenship?
Arguments:
I. Yes, This will bolster the intimac...
Consider the following statements:
Assertion (A): A heavy downpour helps reduce humidity in the atmosphere.
Reason (R): Rain occurs when t...
In each question a statement is given, followed by two assumptions, numbered I and II. An assumption is supposed or taken for granted. You have to con...
A statement is given, followed by two assumptions I and II. You have to consider the statement and two assumptions and decide which of the assumption(s)...
Statement: The International Education Fair promises to be a one stop destination for students scouting for their next course /college ...
Flipkart’s announcement that SoftBank Vision Fund, a private equity fund backed by Japanese billionaire Masayoshi Son, would take a stake in the com...
Statement:
“From tomorrow morning, we will be on an indefinite strike till our demand for salary hike is met.” – a notice from the Presid...
In each question below is given a statement followed by two assumptions numbered I and II. You have to consider the statement and the following assumpt...
Statement: The next meeting of the management body of ixambee will be held after six months.
Assumption:
I...
