For instance, when two gears of different sizes mesh and rotate, the pinion will turn faster and with less torque than the larger gear. Gearing refers to the relationship, or ratio, of a company’s debt-to-equity (D/E). Based on the following details, you need to assess whether ABC meets the bank’s expectation of gearing ratio. What is […]

For every $4 contributed by common stockholders, there are only $3 contributed by fixed cost bearing funds. Hence, the capital provided by these two is said to offer a fixed return. If you have more questions about financial formulas and concepts, visit our resource hub! Agicap is THE cash management solution that revolutionizes the way