The following financial data is available for DEF plc. ('000) revenue 15,520 profit after tax 4600 PBIT

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The following financial data is available for DEF plc. (£'000)

revenue 15,520

profit after tax 4600

PBIT 6300

current assets 1030

current liabilities 955

long term liabilities 5600

equity plus reserves 18450

DEF plans to raise £2 million in finance by issuing 8% debentures,.

what would the new financial gearing be after the issue? using debt/(debt+equity). show your work.

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Posted Date: Mar 17, 2023 02:36 AM

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The following financial data is available for DEF plc. ('000) revenue 15,520 profit after tax 4600 PBIT

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To calculate the new financial gearing after issuing the debentures we need to determine ... View the full answer

Accounting concepts and applications

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