Alevel Business RatioWatch
out a long-term loan of £100 000 from the bank.
Calculate its new gearing ratio after taking out this bank loan.
Please can someone help me?
The formula for gearing (%) = non-current liabilities/ total equity + non-current liabilities x 100 --- however, I'm not sure the formula is correct for this Q.
Perhaps... --> Debt/ equity ratio: Debt/ equity x 100