High gearing involves:
A. Excess of debt capital
B. Excess of equity capital
C. Deficiency of debt capital
D. Deficiency of debt capital
Answers
Answered by
1
Answer :-
High gearing involves Excess of debt capital.
Explanation :-
A company is said to have a high capital gearing if the company has a large debt as compared to its equity.
Answered by
1
Answer:
A. Excess of debt capital
Explanation:
A high gearing ratio means the company has a larger proportion of debt versus equity. Conversely, a low gearing ratio means the company has a small proportion of debt versus equity. Capital gearing is a British term that refers to the amount of debt a company has relative to its equity.
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