Capital Gearing means :

Proper capitalisation

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Watered capital

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Fixation of a proper ratio between two or more types of securities

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Trading on equity

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Fixation of a proper ratio between two or more types of securities
Capital Gearing refers to the amount of debt that a company holds relative to its equity. Also known as financial leverage.
It is a fixation of a proper ratio between two or more types of securities.

Suggest Corrections