The capital structure of JKL Limited consists of 12% debentures of 50 lakhs, 10% preference shares of 25 lakhs, 14% term loan of 15 lakhs and equity…

CA Intermediate · Financial Management and Strategic Management · MTP · May 2026
The capital structure of JKL Limited consists of 12% debentures of 50 lakhs, 10% preference shares of 25 lakhs, 14% term loan of 15 lakhs and equity share capital of 48 lakhs. Its reserves & surpluses are 24 lakhs. What would be the capital-gearing ratio?
(A) 1.04
(B) 1.25
(C) 1.33
(D) 1.56

Suggested Answer and Working Notes:

Correct Answer: Option (B)

1.25

Topics: Part-A: Financial Management

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