Which of the following statements is/are correct? (a) It is always bad to invest in a highly

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Which of the following statements is/are correct?

(a) It is always bad to invest in a highly geared company

(b) Redemption of long-term loans will reduce a company’s gearing

(c) Paying dividends to its shareholders will increase its capital gearing

(d) If loan notes form less than 5% of a company’s capital employed it is not geared

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Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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