25. As well as the information above, the following extra data is available:
Gearing (debt/equity) 35.1% 49.9%
Interest cover (PBIT/interest) 9.5 7.2
Inflation 3% 3%
Based on all of the information available, are the following statements true or false?
- Employees may be unhappy with their wages in 20X8.
- Financial risk for shareholders appears to be a problem area.