A business has non-current liabilities of 200,000 and a gearing ratio of 40%. It then takes out

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A business has non-current liabilities of £200,000 and a gearing ratio of 40%. It then takes out a long-term loan of £100,000 from the bank.

Calculate its new gearing ratio after taking out this bank loan?

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Data Analysis and Decision Making

ISBN: 978-0538476126

4th edition

Authors: Christian Albright, Wayne Winston, Christopher Zappe

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Posted Date: Apr 28, 2023 03:37 AM

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A business has non-current liabilities of 200,000 and a gearing ratio of 40%. It then takes out

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The current total liabilities of the business is 200000 The ... View the full answer

Data Analysis and Decision Making

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