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    Debt/Equity calculations raymond12

    in 2014 Q5 [B] [ii] i got a ratio of 3:1, equity to debt. but in the marking scheme its 1.3:1. i added up the same figures as well, its just my final answer thats different. anyone know why??

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      Marking scheme often is a bit dodgy with that sort of thing.

      Debt/Equity is

      long term debt + pref shares : ORDINARY share capital + retained earnings.

      Once you've subbed the respective figures in, that is the correct answer.

      Gwan Raymond

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      Thank you

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