Question

    Refer the below details and answer question 24:

    Calculate the Capital Gearing Ratio
    A 1.81 Correct Answer Incorrect Answer
    B 1.63 Correct Answer Incorrect Answer
    C 1.92 Correct Answer Incorrect Answer
    D 2.5 Correct Answer Incorrect Answer
    E 1.67 Correct Answer Incorrect Answer

    Solution

    = Fixed Interest & Dividend Bearing Funds Equity Share holders fund Fixed Interest & Dividend Bearing Funds = pref sh. (3,60,000) + debentures (2,40,000) = 6,00,000 Equity Shareholders fund = Eq. Shares (2,00,000) + GR (1,40,000) – profit & loss (28000) =3,12,000 = 600,000 / 3,12,000 = 1.92

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