a. Explain what is meant by capital gearing/leverage. b. Why might this influence a prospective investor's decision
Question:
b. Why might this influence a prospective investor's decision concerning whether or not to buy equity shares in a company?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 54% (11 reviews)
a Capital gearingleverage Gearing or leverage as it is called in the USA refers to the relationship ...View the full answer
Answered By
Kainat Shabbir
i am an experienced qualified expert with a long record of success helping clients overcome specific difficulties in information technology, business and arts greatly increasing their confidence in these topics. i am providing professional services in following concerns research papers, term papers, dissertation writing, book reports, biography writing, proofreading, editing, article critique, book review, coursework, c++, java, bootstarp, database.
5.00+
184+ Reviews
255+ Question Solved
Related Book For
Introduction To Financial Accounting
ISBN: 978-0077138448
7th edition
Authors: Anne Marie Ward, Andrew Thomas
Question Posted:
Students also viewed these Accounting questions
-
Explain what is meant by the term decision model.
-
Define the term margin of safety. Explain what is meant by the term operating leverage. What impact does an increase in the margin of safety have on risk? What impact does an increase in leverage...
-
(a) Explain what is meant by component depreciation and its status under inter national accounting standards. (b) Trin, a limited liability company, owns its business premises. It has just installed...
-
BACKGROUND The company, North S.L., has the following information in the Balance Sheet and Profit and Loss Account for 2016, before calculating its Corporate Tax: BALANCE SHEET ASSETS LIABILITIES...
-
Estate Pension Services helps clients to set up and administer pension plans that are in compliance with tax laws and regulatory requirements. The firm uses a job-order costing system in which...
-
Grand River Company produces a high-quality insulation material that passes through two production processes. Data for November for the first process follow: Required: 1. Assume that the company uses...
-
Its not like what youve done has really hurt anyone. At most, the missing money might cost earnings-pershare, maybe a penny. Is that what caused you to write those checks in the name of your company?
-
Cherokee Company began operations when it issued common stock for $80,000 cash. It paid $60,000 cash in advance for a one-year contract to lease delivery equipment for the business. It signed the...
-
Contemporary psychoanalysis has undergone a paradigm shift from drive reduction to the relational model. The most fundamental difference between relational and classical forms of psychoanalysis is...
-
We believe we can sell 90,000 home security devices per year at $150 a piece. They cost $130 to manufacture (variable cost). Fixed production costs run $215,000 per year. The necessary equipment...
-
Explain what each of the following is intended to measure: (a) Dividend yield; (b) Dividend cover; (c) Earnings per share; (d) Price-earnings ratio; and (e) Return on equity.
-
Explain the limitations of using accounting ratios in time-series analysis and inter firm comparisons, giving examples where appropriate.
-
Write the overall equation (including the physical states), the complete ionic equation, and the net ionic equation for the reaction that occurs when aqueous solutions of lead (II) acetate and barium...
-
How can personnel requirements be determined?
-
What conclusions can be drawn from a break-even calculation?
-
What is the relationship between objective and means?
-
Tesla Inc. has generated a lot of excitement about producing its Model 3 sedan, its electric car for the masses. The Model 3 begins at $35,000, while other luxury models Tesla produces cost...
-
What different kinds of knowledge exist and how do they relate to management?
-
A liquid mixture contains N components (N may be any number from 2 to 10) at pressure Pmm Hg. The mole fraction of the ith component is xi(i = 1; 2; ... ;N), and the vapor pressure of that component...
-
What is the ideal number of children to have? This question was asked on the Sullivan Statistics Survey I. Draw a dot plot of the variable Children from theSullivanStatsSurveyI data set at...
-
Form groups of three students each. (If there are more than three students in a group, extras can be paired up.) Each student should select or be assigned one of these three inventory methods: 1....
-
Refer to the fiscal 2011 financial statements for Starbucks either at investor.starbucks.com or on the SECs EDGAR Web site. Assume that Starbucks uses the periodic inventory method. 1. Compute the...
-
Go to Deckers Outdoor Corporations latest annual report information on its Web site. Deckers Outdoor Corporation is the exclusive licensee for the manufacture of Teva footwear. Use the latest 10-K...
-
A car costing $39,000 is leased at 4.4% compounded semi-annually for 6 years. What is the amount of the monthly lease payment excluding taxes? Round your answer to 2 decimal places. Your Answer:
-
Compute 3 22 The 6xy ds, where S is the surface of the tetrahedron with sides z = 0, y = 0, x + z = 1, and x = y. x
-
Binary search trees have their best performance when they are balanced, which means that at each node n, the size of the left subtree of n is within one of the size of the right subtree of n. Write a...
Study smarter with the SolutionInn App