Information from the financial statements of an entity for the year to 31 December 20X5:

Information from the financial statements of an entity for the year to 31 December 20X5:

The gearing ratio calculated as debt/equity and interest cover are:
A . gearing of 15% and interest cover of 6.
B . gearing of 16% and interest cover of 6.
C . gearing of 15% and interest cover of 4.
D . gearing of 16% and interest cover of 4.

Answer: A