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the business has a lot of money tied up in loans and interest.

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15y ago

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What is highly geared?

explain what is meant by the term 'highly geared' in financial management


What is the difference between a highly geared company and a lowly geared company?

Gearing is a measure of how big a company's borrowings are, relative to its size. There are different methods of calculating gearing but the simplest and most effective is the debt-to-equity ratio. This shows how much the company owes (debt) compared to its size (equity) and is calculated by dividing total borrowings (current and long term) by net assets and is expressed as a percentage. A company with a high percentage is said to be highly geared and has large borrowings (normally from the bank) relative to its size and vice versa for a company with a low percentage.


Why is the value of a geared company higher than an ungeared company under the mm-with - tax - model?

Under the Modigliani-Miller theorem with taxes, a geared company (one that uses debt financing) has a higher value than an ungeared company because the interest on debt is tax-deductible. This tax shield effectively lowers the overall tax burden of the geared company, increasing its cash flows and overall value. Additionally, the use of debt can enhance returns on equity, making geared firms more attractive to investors. Thus, the benefits from the tax shield contribute significantly to the higher valuation of geared companies.


As debt is a cheaper source of finance than equity companies should be highly geared in order to maximise their market value?

debt


Highly visible patrols that are geared toward detecting crimes in progress and responding to citizen calls?

?? Saturation patrol ?? Unknown what answer the questioner is looking for.


Which is correct geared at or geared toward?

Both "geared at" and "geared toward" are commonly used and considered correct in informal contexts. However, "geared toward" is more widely accepted and considered more formal than "geared at."


What is meant by a company's vision?

Where the company sees itself in the future.


What is meant by company vision?

Where the company sees itself in the future.


What chain do you need for a 28t sprocket and a 10t driver?

You need a chain meant for single-speed or internally geared bikes, cut to the right length.


How were you reffered to company?

I was referred to this company by a friend who spoke highly of the company's culture and values.


What is the anagram of geared?

An anagram of geared is agreed.


When did Geared happen?

Geared happened in 2009.