Answer to Question #263305 in Finance for olga

Question #263305

Explain the concept of “gearing” and its impact on a business. 


1
Expert's answer
2021-11-09T17:50:26-0500

Gearing gauges a firm's fiscal exposure or how much of a corporation's activities are supported by bankers rather than stockholders. When the debt-to-equity ratio is substantial, a company is said to be highly geared or indebted.


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