25. As well as the information above, the following extra data is available:
20X8 Â Â Â Â Â Â Â Â Â Â Â Â Â 20X7
Gearing (debt/equity) Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 35.1% Â Â Â Â Â Â Â Â Â Â Â 49.9%
Interest cover (PBIT/interest) Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 9.5Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 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.