Calculating Financial Gearing

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Debt to Equity Ratio > Forum > Calculating Financial Gearing

Calculating Financial Gearing
Mohamed
Hello there. I need some help on how to calculate financial gearing by using debenture market price and how to find or calculate the market price. I know that the financial gearing formula is = D / D + E but I am facing some difficulties to understand it.
 

 
Financial Gearing
Nayan Shah, Student (MBA), United Kingdom, Member
Hi, I did some research and on online I found two formulas one is the one you mentioned and the other is D / E. Apparently there are two methods of calculating it. I believe from what I gathered it focuses on how will a company utilize its equity funds towards paying off its long term liabilities quicker. But please don't quote me on it as I could have misinterpreted it.
 

     

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