高階BAFS-RATI-016
A higher gearing ratio means:
A. More cash in the current account
B. More long-term debt relative to capital employed✓ 答案
C. A higher gross profit margin by definition
D. That the firm has no interest to pay
解說
Gearing measures how far long-term finance comes from debt. Higher gearing means more fixed interest and more financial risk. It is not a profit margin and it does not mean interest has disappeared.