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What is an advantage of a low level of gearing

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Reference no: EM133161397

Question - The current annual maintenance cost of the existing truck is $63,000. The new truck will require no maintenance in the first two years of its life because it is covered by a manufacturer's two-year warranty. However, after the warranty expires in year two the annual maintenance expense will be $87,000.

The Announcement refers to NRW's "Very low level of gearing"

a) How is this figure calculated?

b) What is an advantage of a low level of gearing?

Reference no: EM133161397

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