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Question
The data given below shows that the capital structure of ABC Ltd. is ______ geared.
Fill in the Blanks
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Solution
The data given below shows that the capital structure of ABC Ltd. is highly geared.
Explanation:
The company's 60% debt to 40% equity ratio suggests a greater reliance on debt than equity. As a result, ABC Ltd. capital structure is highly geared. (High ratio of debt to equity)
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