A listed companys capital employed as at 31 December 2012 was 8,000,000. This amount includes the items

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A listed company’s capital employed as at 31 December 2012 was £8,000,000. This amount includes the items shown on the right. Which capital gearing calculation shown below would you accept as correct?

(a) £500,000/£8,000,000 × 100 = 6.25%

(b) £500,000 + £2,000,000/£8,000,000 × 100 = 31.25%

(d) £8,000,000 − £500,000 − £2,000,000/£8,000,000 × 100 = 68.75%

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Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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Question Posted: Aug 28, 2023 09:25 AM

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A listed companys capital employed as at 31 December 2012 was 8,000,000. This amount includes the items

Question:

8% Loan notes 6% Preference shares £'000 500 2,000

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b 500000 ...View the full answer

Financial Accounting An Introduction

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