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FINANCIAL GEARING Definition

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FINANCIAL GEARING reflects any borrowing that the company may have undertaken. Operating income will become more volatile with increased financial gearing (borrowing). Thus the shares will have more risk attached to them. More borrowing, more risk. See GEARING and OPERATIONAL GEARING.

 

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ACCRUED INTEREST is interest earned but not paid since the last due date.

CFP see CERTIFIED FINANCIAL PLANNER.


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