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    Finance question?

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    If we divide a company's debt by its equity finance this is called?

    8 Comments

    Original Poster Banned

    I'm struggling between debt/equity ratio or gearing ratio?

    *Thinks back to first year finance module which I hated...*

    Can't remember sorry mate Check a textbook? Or google/wiki it?

    Original Poster Banned

    DragonChris;5199306

    *Thinks back to first year finance module which I hated...*Can't remember … *Thinks back to first year finance module which I hated...*Can't remember sorry mate Check a textbook? Or google/wiki it?



    I've tried both, but its still rather vague.

    debt-to-equity ratio

    Gearing ratio is a more general term which encompasses debt-to-equity ratio, times interest earned (EBIT / total interest), equity ratio (equity / assets), and debt ratio (total debt / total assets) etc

    Original Poster Banned

    I'm still not convinced. I have emailed my lecturer about it!

    I bet if you were on Who wants to be a millionaire youd ask the audience and even if 92% thought it was A youd do a 50/50

    "divide a company's debt by its equity finance"

    company debt / equity finance

    How difficult can it be??

    No kidding the UK banks are in the mess that they are in...

    Original Poster Banned

    Forsaken;5204690

    I bet if you were on Who wants to be a millionaire youd ask the audience … I bet if you were on Who wants to be a millionaire youd ask the audience and even if 92% thought it was A youd do a 50/50"divide a company's debt by its equity finance"company debt / equity financeHow difficult can it be?? No kidding the UK banks are in the mess that they are in...



    Ok simmer! I know you're trying to help, but as I said the definitions of both are very very similar. Will let you know what my lecturer says, and if your right I will shower you in praise.:thumbsup:
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