Doin a finance module, can anyone help me on how to work out the gearing ratio of a company?

3.5million shares, 拢1 a share,
firm's beta is 0.74
current market price of bond quoted at 150% of par value
has a total 1million par value and has a YTM 11% which is equivalent to cost of debt
market risk premium is 7%
treasury bill/risk free rate 8%
corporate tax 35%

Are you sure its the gearing ratio you are after?? Not possible to calculate it from the info provided.

Gearing ratio is either (Long Term Liabilities divided by
Long Term Liabilities + Equity Shareholders' Funds) OR (Long Term Liabilities divided by Equity Shareholders' Funds).

From your info, l think you are trying to calculate weighted average cost of capital (WACC).

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