Bastante plc has 40,000 equity shares in issue. They are currently trading at 3.00 each. Bastante plc

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Bastante plc has 40,000 equity shares in issue. They are currently trading at £3.00 each. Bastante plc also has 400 debentures, trading at par.
Required
a. Calculate the gearing ratio for Bastante plc using market values.
b. Explain the outcome.

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Related Book For answer-question

Introduction To Financial Accounting

ISBN: 978-0077138448

7th edition

Authors: Anne Marie Ward, Andrew Thomas

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Question Posted: Dec 20, 2016 10:33 AM

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Bastante plc has 40,000 equity shares in issue. They are currently trading at 3.00 each. Bastante plc

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a The market value of Bastante plcs equity is 120000 400...View the full answer

Introduction To Financial Accounting

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