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At 31 December 2017 Bagsack Co had equity of €9

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At 31 December 2017 Bagsack Co had equity of €9.75 million, long-term loan notes of €3.125 million and longterm lease (=finance lease) obligations of €1.5 million.

During the year to 31 December 2018 equity increased by €2.8 million, €1.725 million of longterm loan notes were paid back and longterm lease obligations increased by 450,000.

What is Bagsack Co's level of gearing (debt/ debt +equity) at 31 December 2018?

Group of answer choices

35%

10%

28%

21%