For the Financial Manager Who Cannot Decide on a Suitable

question 30

Multiple Choice

For the financial manager who cannot decide on a suitable level of gearing, which of the following is the best guideline?

• A) Keep gearing to a minimum
• B) Aim to achieve the maximum possible levels of gearing
• C) Adopt the gearing used by average firms in the industry
• D) Gear at the level of tax exhaustion

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