If debt is Rs 220Rs-220- and equity is Rs 300 - then the gearing ratio is -

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Standard XII

Accountancy

Partner's Capital Accounts

If debt is Rs...

Question

If debt is Rs 220, and equity is Rs 300 , then the gearing ratio is ______.

20

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73.33

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Solution

The correct option is B $73.33$ %
Capital gearing ratio = Fixed Interest bearing Capital/ Equity funds or Networth
= $220 / 300$
= $73.33$ %

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If debt is Rs 220Rs.220, and equity is Rs 300 , then the gearing ratio is ______.

The correct option is B 73.33%Capital gearing ratio = Fixed Interest bearing Capital/ Equity funds or Networth = 220/300 = 73.33 %

If debt is Rs 220, and equity is Rs 300 , then the gearing ratio is ______.

The correct option is B $73.33$ %
Capital gearing ratio = Fixed Interest bearing Capital/ Equity funds or Networth
= $220 / 300$
= $73.33$ %