Advertisements
Advertisements
Question
What is meant by capital gearing ratio?
Advertisements
Solution
Capital gearing ratio is the ratio between the capital plus reserves i.e. equity and fixed cost bearing securities. Fixed cost bearing securities include debentures, long-term mortgage loans, etc.
APPEARS IN
RELATED QUESTIONS
Explain the following as factors affecting the requirements of working capital:
Scale of operations
Explain the following as factors affecting the requirements of working capital:
Production cycle
Explain the following as factors affecting the requirement of working capital:
The credit allowed and availed
Answer the question.
Briefly explain any four types of working capital required by a business concern.
Higher dividend per share is associated with
______ refers to the decisions regarding where to invest so as to earn the highest possible returns on investment.
______ involve identifying various sources of funds and deciding the best combination for raising the funds.
Net working capital may be defined as the:
Assertion (A): A commercial bill is a bill of exchange used to finance the working capital requirements of business firms.
Reason (R): Commercial bill is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.
A business firm should have extra funds to meet future emergencies. Identify the type of working capital indicated here.
