The capital of a limited liability company is made up as follows: $m Issued ordinary share capital 1,000 Share premium account 1,500 Accumulated profits 3,000 8% loan notes 1,500 Which of the following calculations of the company’s gearing ratio, based on these figures, is correct? A 1,500/6,000 = 1 25% B 4,500/1,500 = 300% C 4,500/6,000 = 1 75% D 1,500/1,000 = 150%
A |