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(a) Calculate and comment on gearing ratios for Vodafone plc. Em 96,804 Em Non-current assets Current assets: Inventory Trade and other receivables Taxation recoverable Cash and cash equivalents 288 5,023 21 7,481 12,813 (18,946) Current liabilities of which: Short-term borrowings 4,817 Long-term borrowings Other non-current liabilities Net assets (17,798) (5,580) 67,293 Profit before interest and taxation (ignoring good will impairment) Interest payable Market capitalisation 9.200 (1,612) 93,300 Note: assume net assets equal shareholders' funds. (b) What is the effect of gearing on returns to shareholders
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