高階bafs-u08-d04
A firm with a higher gearing ratio than last year:
A. Relies more heavily on debt finance relative to equity or assets✓ 答案
B. Has automatically lower financial risk
C. Must hold more cash as a result
D. Is guaranteed a lower interest rate
解說
Gearing measures the proportion of finance from debt. Higher gearing magnifies both the return to shareholders and the financial risk, because interest is payable regardless of profit. Interest cover is the usual companion measure.